The announcement comes as Pakistan seeks a larger and longer-term bailout package under the Extended Fund Facility (EFF) with the IMF, with a formal request made last week. The size and duration of the next program will be determined after consensus is reached in May 2024. Pakistan’s finance minister has ruled out the possibility of a ‘Plan B’ and emphasized the government’s commitment to implementing structural reforms. The country faces a chronic balance of payment crisis, with nearly $24 billion in debt and interest payments due in the next fiscal year. The finance ministry projects economic growth of 2.6% and average inflation of 24% in the current fiscal year, with inflation having peaked at a record high of 38% in May 2023.
IMF Executive Board to Review $1.1 Billion Funding for Pakistan on April 29
