As Pakistan prepares for the arrival of an International Monetary Fund (IMF) mission this Wednesday, discussions are set to unfold regarding the existing USD 3 billion Stand-By Arrangement (SBA) and the potential pursuit of a new loan program ranging between USD 6 to 8 billion.
Scheduled from March 14 to 18, the talks aim to assess Pakistan's adherence to the existing USD 3 billion Stand-By Arrangement (SBA) and explore prospects for a USD 6 to 8 billion fresh loan, as per a report by ARY News citing insider sources.
Muhammad Aurangzeb, the recently-appointed Finance Minister, has signalled readiness to engage in talks with the IMF, focusing on the SBA agreement's final installment of USD 1.1 billion. Pakistan has reportedly met the IMF's targets for the second review, paving the way for further negotiations.
During discussions, Pakistan is expected to propose a new agreement under the 36-month Extended Fund Facility (EFF), seeking substantial financial support from the IMF. Collaborative efforts between Islamabad and the IMF will aim to outline economic objectives for this prospective loan program.
The IMF's focus currently lies on completing the ongoing Stand-By Program, set to conclude in April 2024. Following the formation of Prime Minister Shehbaz Sharif’s cabinet, a mission for the second review of the Stand-By Program is slated for immediate dispatch.
However, amidst these discussions, Prime Minister Shehbaz Sharif has expressed determination to liberate Pakistan from foreign debt, vowing to sever ties with the IMF.
Addressing the maiden meeting of the new federal cabinet, PM Shehbaz stressed on the pressing need to tackle rising inflation and prioritize relief measures for the masses.
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