IMF Confirms Talks on New Loan Program Are Underway Virtually

The International Monetary Fund will support a homegrown program for Pakistan under a new Extended Fund Facility (EFF). This was stated by Julie Kozack, IMF’s Director of Communication while briefing media persons. She stated, “We recently had staff visiting Pakistan. The staff was there May 13th through 23rd. We made significant progress toward reaching a staff-level agreement on a homegrown program that can be supported under a new Extended Fund Facility (EFF) with the Fund. Those discussions are continuing virtually”. Pakistan has requested a new bailout package of up to $8 billion for at least 3 years under the Extended Fund Facility, with the potential for additional climate financing. In April, 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.