IMF Team to Visit Pakistan for New Bailout Package Negotiations

Pakistan Finance Ministry has announced that a team from the International Monetary Fund (IMF) will be visiting the country next month to discuss a new bailout package. This comes as Pakistan seeks financial assistance ranging from USD 6 to USD 8 billion, with a possibility of additional funding through climate financing.

The Finance Minister, Muhammad Aurangzeb, revealed that negotiations for the new IMF program will commence by mid-May, with hopes of reaching a staff-level agreement by mid-July. Pakistan is keen on securing a long-term arrangement with the IMF, preferably spanning three years.

Aurangzeb also mentioned that the completion of the second phase of the China-Pakistan Economic Corridor (CPEC) is crucial for Pakistan to repay its debt to Beijing. He emphasized the importance of attracting further Chinese investment through special economic zones under CPEC Phase 2.

During his visit to Washington, Aurangzeb met with key financial institutions and discussed Pakistan’s positive economic indicators under the IMF’s Stand-by Arrangement. He also addressed concerns from rating agencies regarding inflation, primary balance, and interest rates.

Pakistan’s current IMF arrangement is set to expire in late April, prompting the government to seek a larger loan to stabilize the economy and implement structural reforms. The IMF has stressed the need for prioritizing reforms to revitalize Pakistan’s economy over the size of the new loan package.