ISLAMABAD: Pakistan’s new government team is expected to hold a meeting with the officials of the International Monitory Funds (IMF) in late March or April to seek Extended Fund Facility (EFF), local media reported on Thursday.
According to media reports citing a government official, Pakistan has planned to seek a new loan of at least $6 billion from the international body.
The reports said Islamabad will try to negotiate an EFF program with the IMF that will spread to for four to five years.
The new program is likely to help Pakistan bolsters revenue, improve financial health of state-run companies and keep exchange rate at market based.
The report stated that a new IMF agreement, expiring in March 2024, is vital to the country’s credit profile.
According to sources within the Ministry of Finance, a comprehensive report regarding the implementation of the IMF targets has already been submitted to the international body.
However, one requirement could not be met, pertaining to the amendment of laws governing government-owned institutions.
Days ago, the international credit rating agency Fitch noted that Pakistan’s external position had improved in recent months with State Bank of Pakistan reporting net foreign reserves of $8 billion by Feb 9, 2024.
It advised the new government to engage with the IMF as quickly as possible.
It added that there has been fair progress on targets under the SBA. Moreover, it perceived there is stronger consensus within Pakistan on the need for reforms.
