Pakistan in talks with IMF for ‘new bailout programme’

WASHINGTON: The International Monetary Fund (IMF) on Friday confirmed that talks were underway with Pakistan on 24th ‘longer and larger’ bailout programme under the Extended Fund Facility (EFF).

When asked about the staff-level agreement, IMF Communication Director Julie Kozack – while addressing a press briefing – avoided answering, indicating that the negotiations are still ongoing.

“Right now, a mission team led by Nathan Porter is meeting with Pakistan authorities this week to discuss the next phase of our engagement.”

She said: “On April 29th of this year, our Executive Board completed the second review of the stand-by arrangement for Pakistan, allowing a disbursement of about $1.1 billion.

“The completion by our Board of the second and final review of the stand-by arrangement reflected the authority’s strong policy efforts during the time of the standby, which did help stabilisation of the economy.”

Responding to another question, the communication director said: “There is a mission on the ground, we will wait for them to complete their work and we will communicate the findings of the mission in due course.”

Pakistan is seeking a $6 to $8 billion bailout package from the international lender for three to four years to address its financial woes.

The technical experts’ team of the International Monetary Fund (IMF) landed in Pakistan for talks on a fresh loan programme and budget preparations on May 10.

Pakistan faces significant economic challenges ahead of the new talks, including a failed tax amnesty scheme proposed by the IMF.