Islamabad is expected to receive a fresh loan from the Washington-based International Monetary Fund (IMF) due to changes in macroeconomic conditions that are favoring Pakistan, according to Finance Minister Muhammad Aurangzeb.
“The fund has been extremely open in terms of agreeing to look into a larger, longer program,” the finance czar stated in an interview with The National.
Pakistan has formally requested from the IMF another bailout package under the Extended Fund Facility (EFF) with potential for augmentation through climate funding. The amount is estimated to be between $6 and $8 billion.
The precise scope and duration of the program won’t be decided upon until May 2024, when an agreement has been reached on its main features.
As it attempts to strengthen its faltering economy, Aurangzeb told the Abu Dhabi-based journal that macroeconomic fundamentals are changing in its favor.
He stated that the rupee has at last stabilized and that by the end of the next year, inflation should be down to single digits.
He went on to say that the cash-strapped country would require assistance for at least three years in order to implement a reform plan that would affect energy and taxation, among other areas.
The director of the global lender for Middle East and Central Asia stated last week that the IMF was prepared to assist Pakistan and that the reform package now matters more than the scope of the new program.
