Islamabad: Pakistan has sought an increase in the size and duration of its $6 billion International Monetary Fund ,International Monetary Fund) program, country finance Minister Mifta Ismail said on Monday.
Ismail made the remarks in a video statement after talks with the IMF in Washington. It came as the fund said Islamabad had agreed to withdraw subsidies to the oil and power sectors before resuming next month to review the IMF’s support for the country.
“I have requested funds and I think they have largely agreed to extend the program for another year,” he said. “I have also requested that they increase the funds available to Pakistan under this program from $6 billion, perhaps a little more.”
He said the details would be decided when the mission visits Pakistan in May.
Referring to its Expanded Funds Facilitation Program, the IMF said in a statement, “Based on constructive discussions with officials in Washington, the IMF is expected to resume discussions on policies to meet the 7th EFF Review in Pakistan in May.” hopefully.” ,
This includes the $6 billion support that the IMF agreed to extend to Pakistan in 2019. IMF’s concerns over monetary policy and fiscal tightening measures have slowed money payments at times.
The IMF also said that Pakistani officials had requested an extension of the EFF arrangement until June 2023 after talks in Washington agreed to give up subsidies.
From April to June, Pakistan will provide subsidies of more than $2 billion to the oil and power sectors.
According to former finance minister shaukat tarinoThe IMF had earlier questioned how the government could fund it without risking a higher fiscal deficit.
If the IMF review is approved, Pakistan will receive more than $900 million, which will also unlock other external funding.
With the rising current account and foreign exchange reserves depleting by up to $10.8 billion, the South Asian nation is in dire need of external finance.
A new Pakistani government that took over from ousted Prime Minister Imran Khan this month has said it faces enormous economic challenges, including falling GDP growth and the risk of double-digit inflation at the mismanagement of the previous administration. .
Finance Minister Ismail said before leaving for Washington that Islamabad would cut both general spending and its funding for development projects to revive the IMF programme.
Ismail made the remarks in a video statement after talks with the IMF in Washington. It came as the fund said Islamabad had agreed to withdraw subsidies to the oil and power sectors before resuming next month to review the IMF’s support for the country.
“I have requested funds and I think they have largely agreed to extend the program for another year,” he said. “I have also requested that they increase the funds available to Pakistan under this program from $6 billion, perhaps a little more.”
He said the details would be decided when the mission visits Pakistan in May.
Referring to its Expanded Funds Facilitation Program, the IMF said in a statement, “Based on constructive discussions with officials in Washington, the IMF is expected to resume discussions on policies to meet the 7th EFF Review in Pakistan in May.” hopefully.” ,
This includes the $6 billion support that the IMF agreed to extend to Pakistan in 2019. IMF’s concerns over monetary policy and fiscal tightening measures have slowed money payments at times.
The IMF also said that Pakistani officials had requested an extension of the EFF arrangement until June 2023 after talks in Washington agreed to give up subsidies.
From April to June, Pakistan will provide subsidies of more than $2 billion to the oil and power sectors.
According to former finance minister shaukat tarinoThe IMF had earlier questioned how the government could fund it without risking a higher fiscal deficit.
If the IMF review is approved, Pakistan will receive more than $900 million, which will also unlock other external funding.
With the rising current account and foreign exchange reserves depleting by up to $10.8 billion, the South Asian nation is in dire need of external finance.
A new Pakistani government that took over from ousted Prime Minister Imran Khan this month has said it faces enormous economic challenges, including falling GDP growth and the risk of double-digit inflation at the mismanagement of the previous administration. .
Finance Minister Ismail said before leaving for Washington that Islamabad would cut both general spending and its funding for development projects to revive the IMF programme.