IMF Engages in Virtual Discussions for New Loan Program with Pakistan

New Loan Program

Julie Kozack, Director of Communication at the International Monetary Fund (IMF), has confirmed ongoing talks regarding a tailored program for Pakistan, facilitated through a new Extended Fund Facility (EFF).

During a media briefing, Kozack announced, “Our staff recently conducted a visit to Pakistan from May 13th to 23rd. Substantial progress has been made towards reaching a staff-level agreement on a domestically conceived program eligible for support under a new Extended Fund Facility (EFF) with the IMF. These discussions are currently underway in a virtual format.”

Pakistan has formally requested a fresh bailout package, seeking up to $8 billion for a minimum period of three years under the Extended Fund Facility, with the potential inclusion of additional funding earmarked for climate-related initiatives.

In April, Finance Minister Muhammad Aurangzeb expressed optimism about finalizing a Staff-Level Agreement for a larger loan program with the IMF by June-July 2024.