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Pakistan on track to secure new loan from IMF: FinMin Aurangzeb

Finance Minister Muhammad Aurangzeb in an interview with Reuters in the course of the G20 Finance Ministers and Central Financial institution Governors’ Assembly on the IMF and World Financial institution’s 2024 annual Spring Conferences in Washington, US, April 18, 2024. — Reuters
  • Macroeconomic elements shifting in Pakistan’s favour: Aurangzeb.
  • Says inflation on observe to drop to single-digit stage by finish subsequent 12 months.
  • Pakistan rupee has lastly stabilised, finance minister claims.

With macroeconomic elements shifting in Pakistan’s favour, Finance Minister Muhammad Aurangzeb has stated that Islamabad is on observe to safe a brand new mortgage from the Worldwide Financial Fund (IMF) — the Washington-based lender.

In an interview with The Nationwide, the finance czar stated: “The fund has been very receptive when it comes to agreeing to contemplate a bigger, longer programme.”

Pakistan has made a proper request to the IMF for one more bailout package deal within the vary of $6 to $8 billion underneath the Prolonged Fund Facility (EFF) with the potential of augmentation via local weather financing.

Nevertheless, the precise dimension and timeframe will solely be decided after evolving consensus on the key contours of the subsequent programme in Could 2024.

Aurangzeb instructed the Abu Dhabi-based publication that the macroeconomic elements are shifting in its favour as it really works to spice up its lagging financial system.

The rupee has lastly stabilised, he stated, including that the inflation is on observe to drop to single-digit ranges by the tip of subsequent 12 months.

He additional stated that the cash-strapped nation would wish no less than three years of assist to hold out a reform agenda throughout a number of sectors together with taxation and power.

Final week, the worldwide lender’s Center East and Central Asia director stated  the IMF was able to assist Pakistan and the package deal of reforms is now extra essential than the dimensions of the brand new programme.

“I believe what’s essential at this stage is to speed up the reforms, double down on the construction of reforms to be able to present Pakistan with its full potential of progress,” Jihad Azour instructed a press convention on the sidelines of the IMF 2024 Spring Conferences.

Final month, Pakistan and the IMF struck a staff-level settlement (SLA) for the completion of the second evaluation and launch of the third tranche of $1.1 billion underneath the Standby Association (SBA) programme.

After hanging the SLA, the IMF confirmed that Pakistani authorities expressed curiosity in a successor medium-term Fund-supported programme to completely resolve Pakistan’s fiscal and exterior sustainability weaknesses, strengthening its financial restoration and laying the inspiration for robust, sustainable and inclusive progress.

The IMF had highlighted 4 main areas for signing the upcoming medium-term bailout package deal for Pakistan’s struggling financial system.



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