The International Monetary Fund (IMF) and the Ministry of Finance are in discussions on the latter’s Extended Fund Facility Programme, which would allow for the acquisition of a fresh three-year loan.
After the present programme ends on March 31, 2024, there is a chance to sign a large $8–10 billion one with the IMF, according to sources who spoke with ProPakistani.
Sources claim that the Ministry of Finance is trying to get the IMF to approve a new three-year loan programme under the Extended Fund Facility. Before this agreement is finalised, the Ministry of Finance will guarantee the IMF that all requirements under the new loan programme will be met.
IMF recommendations for the federal budget for 2024–2025 will thereafter be delivered to the Ministry of Finance.
It is projected that under the provisions of the proposed financing programme, gas and electricity costs will rise and subsidies will decrease even further. According to sources, the new loan programme’s terms would likely be stricter than those of the current standby arrangement.
