IMF may extend bailout package for Pakistan
Date
4/24/2022 2:43:10 PM
(MENAFN- Khaleej Times) Three-year extended fund facility likley to be extended for one more year; loan size to be increased to $8 billion The Pakistan's delegation, led by Minister for Finance Miftah Ismail, discussed pathways to complete seventh review with the IMF. — File photo by Muzaffar Rizvi
Published: Sun 24 Apr 2022, 9:14 PM
Pakistan and the International Monetary Fund on Sunday agreed to extend the existing three-year extended fund facility for another one year and increase the loan size by $2 billion to $8 billion to ease pressure on the country's balance of payments, support foreign exchange reserves and bring economic stability, Khaleej Times has learnt.
The Pakistan's delegation, led by Minister for Finance Miftah Ismail, discussed pathways to complete seventh review with the IMF and agreed with the fund's recommendations to reduce fuel subsidies, pledging to pursue structural reforms to boost a crisis-wracked economy.
The Pakistan delegation held several meetings with the IMF officials, including IMF deputy managing director Ms Antoinette Sayeh, director MCD Jihad Azour and Mission Chief Nathan Porter. The IMF expressed support to the Pakistan delegation.
“An IMF mission lead by Mission Chief Nathan Porter will visit Pakistan in May to discuss the issues around subsidies on petrol and electricity announced by the out going government,” according to a press statement issued by Ministry of Finance.
Miftah Ismail, who took office this month after a previous government lost a no-confidence vote, laid out his government's priorities and efforts to bring fiscal discipline while insulating the vulnerable from oil price volatility in the international markets. The minister said he had 'good discussions' with the IMF during the meetings held on the sidelines of Washington-based lender's annual spring gathering.
Pak team meets WB officials
The delegation also met Axel von Trotsenburg, managing director; Hartwig Schafer, vice-president and other officials of the World Bank.
Progress of on-going program loans and projects as well as avenues for further assistance were discussed.
Finance minister thanked the bank officials for the financial and technical support provided by the bank throughout. The World bank's MD operations also assured full support for Pakistan.
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