The coalition government has been in talks with the Washington-based bank since November to revive its bailout
Post Date – 10:00 PM, Thursday – 6/1/23
Islamabad: Pakistan has decided to negotiate a new program with the International Monetary Fund (IMF) immediately after the budget, as the coalition government plans to complete the $6.5 billion Extended Fund Facility (EFF) without completing all pending reviews.
The coalition government has been in talks with the Washington-based bank since November to restart its bailout, with the funding gap one of the biggest hurdles. About $2.5 billion remains to be paid out of the $6.5 billion program that is due to expire on June 30, Geo News reported.
While talks on the Ninth Review are nearing completion, no staff-level agreement has yet been reached, the sources said. Even after this review is complete, the 10th and 11th reviews will still be pending.
“Completing these two reviews by June 30 seems impossible and the government has decided not to seek an extension,” the source said, adding that Ishaq Dar’s finance ministry would approach the fund after the budget for a new project. Plans – Expected to be submitted June 9, Geo News reported.
The source further said the caretaker government would hold talks with the Washington-based bank if the coalition government fails to conclude talks by the end of its term in August.
The source revealed some details of the new plan, saying the economic team had started
According to Geo News, a deal that is “expected to be stricter” than the existing plan agreed by the Pakistan Justice Instigation (PTI) government in 2019 is being drawn up.
Additionally, they said the new bailout could last more than three years. “Pakistan will be in dire need of an IMF program in September as the country needs to pay around $9-11 billion in external debt repayments by December 2023,” they added.
