In a significant development, the International Monetary Fund (IMF) has announced its readiness to dispatch a mission to Islamabad for the second economic review, post the formation of Prime Minister Shehbaz Sharif’s cabinet. Sources reveal that the IMF is currently prioritizing the completion of the ongoing Stand-By Program, set to conclude in April 2024.
Julie Kozek, IMF Director of Communications, emphasized the importance of concluding the existing standby arrangement while expressing eagerness to collaborate with Pakistan’s new government to ensure economic stability. The focus is on initiating negotiations for a potential fresh loan program, with Pakistan likely seeking between $6 to 8 billion from the international lender.
Notably, the conditions set forth by the IMF are expected to be more stringent this time around, reflecting the evolving economic landscape and the need for robust fiscal discipline. This announcement follows earlier reports indicating that the newly-elected PML-N-led government has opted to pursue a fresh IMF loan program, initiating actions in line with the premier’s directives.
Moreover, it has been revealed that the PTI, founded by Imran Khan, has communicated its stance to the IMF, urging consideration of the country’s political stability in future bailout discussions. This move underscores the intricacies of Pakistan’s economic landscape and the imperative for comprehensive policy frameworks to navigate through challenges effectively.
