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.
Pakistan is on track to secure a new loan from the International Monetary Fund (IMF), according to Finance Minister Muhammad Aurangzeb. The country has requested a bailout package of $6-$8 billion under the Extended Fund Facility (EFF), which may be augmented with climate financing. Macroeconomic factors, including a stabilized rupee and declining inflation, are shifting in Pakistan’s favor. The IMF has emphasized the importance of reforms rather than the size of the loan program.
