Pakistan rules out changes to IMF loan programme

WEB DESK: Pakistan’s Finance Minister, Dr Shamshad Akhtar, has ruled out any changes to the country’s International Monetary Fund (IMF) loan programme.

This means that Pakistan will not request an extension of the programme’s timeframe or an increase in its size.

The IMF is currently negotiating a staff-level agreement with Pakistan on a $3 billion standby arrangement (SBA) program. The talks are expected to conclude on November 15th.

Dr Akhtar has also said that she will advise on how to close Pakistan’s external financing gap after the IMF review is completed.

Pakistan needs to secure $18 billion in external loans in the current fiscal year.

This includes $11 billion in rollovers of deposits and commercial refinancing from bilateral friends, as well as $5 billion in commercial loans, $1.5 billion in international bonds, and $500 to $750 million from the Islamic Development Bank (IsDB).

There are some risks to Pakistan’s ability to secure this financing, including rising interest rates in the United States and volatile oil prices.

However, if these risks are mitigated, Pakistan should be able to secure the financing it needs to avoid a serious external financing crunch.

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