Monday, October 2, 2023

Pakistan Govt Decides to Terminate Existing IMF Loan Program

Considering that the coalition government intends to discontinue the $6.5 billion International Monetary Funds(IMF) without concluding all outstanding evaluations, Pakistan has made the decision to begin negotiations for a new programme with the International Monetary Fund (IMF) immediately following the budget.

Since November, the coalition government has been in talks with the Washington-based lender to resurrect its bailout plan, but one of the greatest obstacles has been the finance shortfall. The $6.5 billion plan, which is set to end on June 30, has around $2.5 billion left to spend.

Although the ninth review negotiations are nearly over, the sources claimed that a staff-level agreement has not yet been achieved. The 10th and 11th reviews will continue to be open even after this one is finished.

Ishaq Dar, Pakistan’s finance minister, stated on Sunday that Pakistan will provide the fund with information about its budget. He continued by saying that since all requirements for the IMF’s ninth review had already been satisfied, he would want to see it completed before the budget, which is scheduled to be presented in early June.

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