The IMF’s executive board will meet on 29th April to discuss the $1.1 billion funding for Pakistan
The top leadership team of the IMF organization (International Monetary Fund) is scheduled to meet on April 29 to debate the acceptance of ($1.1 billion) in assistance for Pakistan, the organization stated on Wednesday, April 24, 2024. Additionally, this funding is the 2nd and final phase of a ($3 billion) standby agreement negotiated with the International Monetary Fund (IMF), which it saved the previous summer to avoid defaulting on its debts and expires this month. South Asian countries seek a new, lengthy, and bigger IMF loan. Muhammad Aurangzeb, Pakistan’s Finance Minister, has stated that Islamabad hopes to get a deal on the fresh plan at the level of employees by the beginning of July.
Furthermore, Islamabad insists it wants a loan for at least three years to aid the economy’s stability and to carry out running late and costly structural changes. Still, Finance Minister Muhammad Aurangzeb has yet to say what kind of plan the country wants. The Islamic Republic of Pakistan is still waiting for an official request, although both the International Monetary Fund and the government of Pakistan are already in talks. If granted, this will be Pakistan’s twenty-fourth IMF loan.
Evenly, the ($350 billion) economy is suffering from an ongoing Balance of Payment (BoP) problem, with more than ($24 billion) in debts along with interest to be paid back over the upcoming fiscal year nearly three times greater than its central bank’s foreign currency holdings. The Pakistani government Ministry of Finance expects the country’s economy to expand by 2.6 percent in the present fiscal year, which ends in June, with the average rate of inflation falling to twenty-four percent from 29.2 percent in fiscal year 2023-to-2024. The previous May, inflation reached a historical peak of thirty-eight percent.
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