With macroeconomic factors shifting in Pakistan’s favour, Finance Minister Muhammad Aurangzeb has said that Islamabad is on track to secure a new loan from the International Monetary Fund (IMF) — the Washington-based lender.
In an interview with The National, the finance czar said: “The fund has been very receptive in terms of agreeing to consider a larger, longer programme.”
Pakistan has made a formal request to the IMF for another bailout package in the range of $6 to $8 billion under the Extended Fund Facility (EFF) with the possibility of augmentation through climate financing.
However, the exact size and time-frame will only be determined after evolving consensus on the major contours of the next programme in May 2024.
Aurangzeb told the Abu Dhabi-based publication that the macroeconomic factors are shifting in its favour as it works to boost its lagging economy.
The rupee has finally stabilised, he said, adding that the inflation is on track to drop to single-digit levels by the end of next year.
He further said that the cash-strapped nation would need at least three years of support to carry out a reform agenda across several sectors including taxation and energy.
Last week, the global lender’s Middle East and Central Asia director said the IMF was ready to support Pakistan and the package of reforms is now more important than the size of the new programme.
“I think what is important at this stage is to accelerate the reforms, double down on the structure of reforms in order to provide Pakistan with its full potential of growth,” Jihad Azour told a press conference on the sidelines of the IMF 2024 Spring Meetings.
