Citi Expects Pakistan to Seal New $8 Billion IMF Deal by End-July

Wall Street Bank Citi expects Pakistan to strike an agreement with the International Monetary Fund (IMF) for a new four-year program of up to $8 billion by the end of July. The bank also recommends going long on Pakistan’s 2027 international bond. “While longer-term challenges pertain, we see several positive catalysts supporting the Eurobonds,” Nikola Apostolov at Citi wrote in a note to clients according to Reuters. “First, a larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Apostolov said after a team from Citi visited Pakistan and met policymakers, including the finance minister. It is pertinent to mention here that a delegation from the IMF led by Mission Chief Nathan Porter arrived at the Finance Division today to officially commence talks on a new loan program. Sources told ProPakistani the exchange will likely span around two weeks. Apart from a new loan program, both sides will discuss the budget for the upcoming financial year. Last month, Finance Minister Muhammad Aurangzeb said that he expects to reach a Staff-Level Agreement on a bigger loan program with the IMF by June-July 2024.