Pakistan and International Monetary Fund (IMF) have formally started discussions on a new loan program and the upcoming budget for the new financial year.
IMF team led by Mission Chief Nathan Porter started talks with Pakistan’s economic team, spearheaded by Finance Minister Muhammad Aurangzeb. The discussions will continue for two weeks as both sides chalked out strategy for upcoming loan program and the budget.
The cash strapped Asian nation is looking for substantial bailout package of over $6 billion from the IMF to strengthen its economy and address fiscal concerns.
Finance Ministry’s economic team has prepared diligently for the negotiations. Extended Fund Facility loan program and the formulation of the national budget will remain in focus during the talks.
IMF’s resident representative in Pakistan, Esther Perez Ruiz, said the lender will share its views to improve governance and sustainable economic development while Pakistan’s Finance chief Aurangzeb emphasized the government’s commitment to expanding the tax net through digitalization.
IMF also expressed concern over political uncertainty in Pakistan despite recent elections, which could affect economic reforms.
