IMF chief Kristalina Georgieva said on Thursday that Pakistan is in discussions with the International Monetary Fund on a possible follow-up program to its nine-month $3 billion Standby Arrangement (SBA).
Kristalina Georgieva
He said there are important issues to be resolved.
Addressing an event at the Atlantic Council think tank, Georgieva said that Pakistan is successfully completing its current program with the IMF and its economy is performing slightly better, now that reserves have increased. R
“There is a commitment to continue on this path, and the country is potentially turning to the fund for a follow-up program,” Georgieva said, noting issues the South Asian nation still struggles to address. Required.
“There are very important issues to be addressed in Pakistan: the tax base, how the rich segment of society contributes to the economy, the way public spending is being directed and, of course, creating a more transparent environment.”
Pakistan and the IMF last month reached a staff-level agreement on a second and final review of the $3 billion standby arrangement, which, if approved by the international lender’s board, would give the South Asian nation About $1.1 billion will be released.
A spokesman said the IMF’s board is expected to review the matter at the end of April, but no firm date has been set.
The two sides have also talked about negotiating a long-term bailout and continuing policy reforms needed to rein in deficits, build reserves and manage rising debt.
Pakistan has decided to formally approach the IMF for the Medium-Term Extended Fund Facility (EFF) during the upcoming annual spring meetings of the Bretton Wood Institutions (BWIs), The News reported on Tuesday.
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The size and duration of the upcoming bailout package will be determined by the IMF’s review mission, which is expected to hold talks, likely from the first week of May 2024, to finalize the main features of the upcoming bailout package. .