IMF executive board to consider $1.1 billion funding for Pakistan

Pakistan is currently facing nearly 30 per cent inflation, making basic commodities such as sugar unaffordable for many consumers.

IMF executive board to consider $1.1 billion funding for Pakistan. The International Monetary Fund (IMF) Executive Board will meet up on Monday to discuss providing $1.1 billion funding to Pakistan.

The funding would be the second and final tranche of a $3 billion standby agreement between Pakistan and the IMF, secured last summer to prevent a sovereign default, and is set to expire this month.

Pakistan is also in negotiations for a new long-term, larger IMF loan. Finance Minister Muhammad Aurangzeb has suggested that Pakistan could reach a staff-level agreement on the new programme by early July. However, the exact size of the loan has not been disclosed.

Earlier, the finance minister had mentioned that the IMF was open to considering a longer and larger economic programme for Pakistan to help revive its struggling economy. Aurangzeb had said he was optimistic about Pakistan’s economic prospects during discussions at the “Annual Meetings of the International Monetary Fund and the World Bank Group”.

Last year, Pakistan received a $3 billion bailout to avoid defaulting on its debts. This year, the country is seeking a $6 billion IMF loan, although Aurangzeb described this figure as as estimated amount only.

Final details are expected to be determined later when an IMF mission reaches Islamabad.

Pakistan is currently facing nearly 30 per cent inflation, making basic commodities such as sugar unaffordable for many consumers. Prices of everyday goods continue to rise, with chicken costing as much as Rs750 per kilogram in some cities.