Initial Pakistan-IMF loan discussions to end tomorrow

WEB DESK: Pakistan and the International Monetary Fund (IMF) will conclude their initial two-week discussions for a new loan on Friday.

These preliminary talks have centered around proposals for the forthcoming budget, according to Rana Ihsaan Afzal Khan, a coordinator to Prime Minister Shehbaz Sharif.

However, Khan did not specify when the second round of talks would commence.

In a statement from Islamabad on Thursday, Finance Minister Muhammad Aurangzeb expressed Pakistan’s aim to secure a staff-level agreement with the IMF for a more substantial and extended loan by the end of June or early July.

This move is crucial for Pakistan as the country seeks fresh support from the Washington-based lender to bolster its foreign reserves and provide policymakers with the necessary leeway to revive an economy struggling with record inflation.

The budget, set to be presented to parliament next month, is anticipated to play a pivotal role in implementing the IMF’s conditions. Historically, Pakistan has utilised its budget as a platform to meet these stipulations.

The current IMF programme is considered one of the most stringent in recent history, compelling Pakistan to make several unpopular decisions.

Key objectives in these negotiations include expanding the tax base, enhancing debt sustainability, restoring the energy sector’s viability, and improving the performance of state-owned enterprises, as outlined by the IMF last month.

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