The Ministry of Finance has readied the documentation for a new, significantly larger loan program with the International Monetary Fund (IMF)

Finance Minister Muhammad Aurangzeb has already arrived in Washington and plans to meet with IMF Managing Director Kristalina Georgieva as soon as possible.

Sources indicate that Aurangzeb will present two requests for this new bailout: firstly, to secure funds through the lender’s Extended Fund Facility, and secondly, to seek additional support to combat climate change. The Finance Division has compiled a briefing detailing measures aimed at addressing climate change, along with specifics regarding the upcoming budget allocation, which will be shared with IMF officials. Concurrently, Governor State Bank of Pakistan Jameel Ahmed and the Secretary Finance Division will provide economic data to the IMF.

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It is anticipated that Aurangzeb’s meeting with Georgieva will lead to an IMF Mission visiting Pakistan in May 2024 to further discuss terms. This mission will work closely with Pakistan’s economic team to formulate the new loan program and draft the budget for the upcoming fiscal year.

In addition to the significant IMF engagement, Aurangzeb’s economic team is scheduled to meet with World Bank officials to explore additional financing options, as per sources. The IMF ministerial meetings are slated for April 17 to 19, with supplementary activities planned from April 15 to 20.

Aurangzeb’s team is also set to engage with finance ministers from China, Saudi Arabia, the UAE, Turkey, and other allied nations during the IMF ministerial meetings.

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