IMF Confirms Talks with Pakistan for 24th Bailout Programme Under EFF in the Works

The International Monetary Fund (IMF) is in talks with Pakistan for a 24th ‘longer and larger’ bailout programme under the Extended Fund Facility (EFF), as reported by ARY News.

During a press briefing, IMF Communication Director Julie Kozack confirmed the ongoing negotiations with Pakistan authorities led by Nathan Porter. While she avoided discussing the staff-level agreement, she mentioned that the IMF Executive Board had recently approved a disbursement of about USD 1.1 billion as part of the stand-by arrangement for Pakistan.

Kozack acknowledged Pakistan’s strong policy efforts during the standby period, which contributed to the stabilization of the economy. The IMF is currently awaiting the findings of the mission team before proceeding further.

Pakistan is seeking a bailout package of USD 6 billion to USD 8 billion for three to four years to address its financial crisis. The IMF’s technical experts’ team arrived in Pakistan earlier this month for discussions on a new loan programme and budget preparations.

In light of Pakistan’s economic challenges, the IMF has urged the Federal Board of Revenue (FBR) to make necessary amendments in tax laws and revoke discretionary powers for granting tax incentives to various sectors. The IMF also emphasized the need to remove special tax regimes in the construction sector to enhance tax efficiency.

Overall, Pakistan’s ongoing negotiations with the IMF highlight the country’s efforts to address its economic challenges and pave the way for financial stability.