Pakistan requests 24th extended IMF bailout program for economic stability

Post by : Elena Malik

Photo : Reuters

The International Monetary Fund (IMF) has confirmed that negotiations are underway with Pakistan for its 24th 'longer and larger' bailout programme under the Extended Fund Facility (EFF). According to a report by ARY News, IMF Communication Director Julie Kozack addressed the press, indicating ongoing discussions regarding a potential bailout package.

Kozack mentioned that a mission team, led by Nathan Porter, is currently meeting with Pakistani authorities to discuss the next phase of engagement. However, she refrained from commenting on any staff-level agreement, suggesting that negotiations are still in progress.

The completion of the second review of the stand-by arrangement for Pakistan by the IMF Executive Board on April 29 allowed for a disbursement of approximately USD 1.1 billion. Kozack acknowledged the Pakistani authorities' strong policy efforts during the standby period, which contributed to stabilizing the economy.

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She stressed the importance of awaiting the mission's findings, indicating that the IMF will communicate the outcomes in due course.

Meanwhile, Pakistan is seeking a USD 6 billion to USD 8 billion bailout package from the IMF for a period of three to four years to address its financial crisis. On May 10, a team of technical experts from the IMF arrived in Pakistan for discussions on a new loan programme and budget preparations.

Pakistan faces significant economic challenges, including the failure of a tax amnesty scheme proposed by the IMF. The IMF has urged the Federal Board of Revenue (FBR) to revoke discretionary powers held by the Board and the cabinet in granting tax incentives. Additionally, it calls for amendments in tax laws related to NGOs, charitable organizations, and taxed pensioners.

Moreover, the IMF highlights the adverse impact of special tax regimes in the construction sector, advocating for their removal to enhance tax efficiency.

This news comes amid ongoing efforts by Pakistan to address its economic difficulties and secure vital financial assistance to stabilize its economy and foster sustainable growth.

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