Pakistan likely to seek fresh loan of $6 to 8 billion from IMF as economic review talks begin from tomorrow

The International Monetary Fund (IMF) mission is likely to land in Pakistan on Wednesday to conduct an economic assessment regarding the USD 3 billion Stand-By Arrangement (SBA) and simultaneously Islamabad is likely to request a USD 6-8 billion fresh loan programme.

According to a report by ARY News, citing sources, the discussions are slated to occur from 14 to 18 March.

Muhammad Aurangzeb, the recently-appointed Finance Minister, has consented to engage in talks with the IMF regarding the SBA agreement and a potential new loan scheme.

According to the report, Islamabad intends to engage in discussions with the IMF concerning the final installment of USD 1.1 billion within the SBA framework. Additionally, Pakistan has already met the targets established by the IMF for the second review, added the report.

Simultaneously, during the negotiations, Pakistan is anticipated to propose a new agreement under the 36-month Extended Fund Facility (EFF). Sources suggest that Pakistan may request a fresh loan program from the IMF ranging between USD 6 to 8 billion.

Officials from the Finance Ministry indicated that Islamabad will collaborate with the IMF to outline the economic objectives for this prospective loan program.

Earlier on 8 March, the Washington-based lender said that it is ready to send a mission to Islamabad for the second economic review after the formation of Prime Minister Shehbaz Sharif’s cabinet.

The IMF Director of Communications said that the focus currently is on completing the ongoing Stand-By Program, which is ending in April 2024. ARY News reported.

Furthermore, a mission for the second review of the Stand-By Program would be dispatched immediately after the formation of the new cabinet in Pakistan.

However, earlier this week, Pakistan PM Shehbaz Sharif vowed to get his country out of foreign debt, declaring that the country would get rid of the International Monetary Fund (IMF), Geo News reported.

“We will get rid of IMF, InshaAllah,” the premier said while addressing the maiden meeting of the newly formed 16-member federal cabinet on Monday.

PM Shehbaz acknowledged that rising inflation is one of the major problems confronting the masses. “Bringing down inflation will be our first test,” he said adding that his government would make all-out efforts to provide relief to the people.