Ahead of the IMF mission’s visit to Pakistan, an advance team of the global lender has reached the cash-strapped country to hold talks regarding their request for a longer and larger bailout package, according to a media report on Friday.
The IMF review mission is scheduled to arrive in Islamabad on May 16, the report said.
Ahead of the IMF mission’s visit to Pakistan, an advance team of the global lender has reached the cash-strapped country to hold talks regarding their request for a longer and larger bailout package, according to a media report on Friday.
Geo News, quoting sources, said a support team of the International Monetary Fund will discuss the first phase of the next long-term loan under the Extended Fund Facility (EFF) with the country’s financial team.
The IMF review mission is scheduled to arrive in Islamabad on May 16, the report said.
The IMF team will receive data from different departments and will also discuss the upcoming budget 2025 with the Finance Ministry officials, Geo News reported.
The team will reportedly stay in Pakistan for more than 10 days.
Pakistan is seeking a new bailout package in the range of USD 6 to USD 8 billion for three years under the EFF, with a possibility of augmentation through climate financing, The News International reported last month.
Meanwhile, Pakistan has decided to seek a rollover of around USD 12 billion debt from key allies like China in the 2024-25 fiscal year to meet a whopping USD 23 billion worth of gap in its external financing as the federal government aims to achieve budget targets before the expected arrival of the IMF team to the country.
According to the Finance Ministry insiders, USD 5 billion from Saudi Arabia, USD 3 billion from the UAE, and USD 4 billion from China will be rolled over, adding that the estimate of further new financing from China would also be included in the next financial year’s budget, The Express Tribune newspaper reported.
Pakistan will receive more than USD 1 billion from the IMF under the fresh loan program, while new financing from the World Bank and Asian Development Bank has also been included in the estimated budget.
According to the Finance Ministry sources, new loan program agreements will be made with financial institutions. The federal government aims to achieve budget targets before the anticipated arrival of the IMF review mission in Pakistan.
Negotiations for a new loan program with the global lender are expected to commence in mid-May ahead of the budget which will be presented in June.