Washington, DC/Islamabad: The International Monetary Fund (IMF) mission and Pakistan have made significant strides towards finalizing a staff-level agreement for an extended fund facility, announced the global lender on Friday. The progress comes as Pakistan seeks financial assistance following the completion of a short-term $3 billion IMF program last month, which helped mitigate the risk of a sovereign debt default.
Led by mission chief Nathan Porter, an IMF team concluded discussions with Pakistani authorities on Thursday, having commenced talks upon their arrival in Pakistan on May 13, as outlined in a statement by the lender. Porter emphasized that ongoing policy discussions, conducted virtually, aim to solidify agreements, including financial support required to bolster Pakistan’s reform initiatives, from both the IMF and Pakistan’s bilateral and multilateral partners.
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Pakistan is expected to seek a new loan of at least $6 billion under the proposed program, while also requesting additional financing from the IMF through the Resilience and Sustainability Trust.
Despite progress, the IMF had previously cautioned about the exceptionally high downside risks facing the Pakistani economy. Porter reiterated that the authorities’ reform agenda aims to transition Pakistan from economic stabilization to achieving robust, inclusive, and sustainable growth.
