Islamabad: Pakistan’s government has decided to approach the International Monetary Fund (IMF) for a new program worth 6 to 8 billion dollars.
According to sources from the Ministry of Finance, the Treasury Department has revealed that upon the directives of Prime Minister Shehbaz Sharif, steps have been initiated, and immediate consultations will be held with the IMF. The new program could range from 6 to 8 billion dollars, and it is likely to come with stringent conditions from the IMF.
The sources further mentioned that negotiations with the IMF will be scheduled, and entry into the IMF program is crucial. The repayment of increasing loans and managing debt is a significant challenge, and it is essential to stay in the IMF program until revenue increases and local resources are generated. The government will need to make tough decisions regarding further increases in electricity and gas prices.
As per the Ministry of Finance, addressing external financial risks is crucial, and market exchange rates are vital for economic reforms. Reforms in public sector entities experiencing losses are necessary, along with measures to tackle environmental changes.
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The sources also highlighted that the current IMF program needs to be completed, and the short-term loan program will end in April. Negotiations for the second review under the short-term program are yet to take place, with the possibility of ongoing discussions with international financial institutions next month. Pakistan is expected to receive approximately 1.2 billion dollars under the current loan program.