The IMF confirmed ongoing negotiations with Pakistan regarding an extensive loan program under the Extended Fund Facility. The discussions aim to address Pakistan’s economic challenges, which include a failed tax amnesty scheme. The IMF has also highlighted the need for Pakistan’s Federal Board of Revenue to revoke discretionary powers and revise tax laws related to NGOs and pensioners.
The International Monetary Fund (IMF) has raised concerns about Pakistan’s ability to repay its debt, highlighting the country’s high fiscal shortfall and external account deficit. The IMF’s assessment comes as Islamabad seeks a fresh bailout package under the Extended Fund Facility (EFF). The global lender has warned that Pakistan faces significant risks in repaying the fund, including delayed reforms, high public debt, and low gross reserves.
The International Monetary Fund (IMF) has granted a $1.1 billion loan tranche to Pakistan, marking the conclusion of the second bailout package. This third and final installment completes a $3 billion standby arrangement aimed at preventing a sovereign default. Pakistan is expected to receive the loan disbursement soon, possibly as early as tomorrow. The country has already received two tranches totaling $1.9 billion. Pakistan is also seeking a new, larger IMF loan over a longer duration of at least three years to support economic stability and implement structural reforms.
The International Monetary Fund (IMF) executive board will meet on April 29 to consider approving the release of $1.1 billion in funding to Pakistan under the $3 billion Stand-By Arrangement (SBA). This follows a staff-level agreement reached on March 20, 2024, after review talks held in Islamabad from March 14 to 19. Pakistan secured the SBA in June 2023 to avert a looming default, and the current tranche is expected to be the last under the short-term deal.
