Pakistan Prime Minister Shehbaz Sharif stated that the financially troubled nation requires another extended bailout from the International Monetary Fund (IMF) to stabilize its vulnerable economy on Thursday, as per ARY News.
“A new tranche of loan is likely to be received from the IMF in a few days, however, we would need another programme,” he said while addressing the session of the Special Investment Facilitation Council (SIFC) apex committee attended by civil-military leadership.
The remarks were made a day following the International Monetary Fund (IMF) reaching a staff-level agreement with Islamabad. This agreement, upon approval by its board, would release the final installment of USD 1.1 billion under the current USD 3 billion standby arrangement.
He mentioned that the International Monetary Fund (IMF) completed the review for the disbursement of the final tranche of USD 1.1 billion, anticipated to be received by next month.
“We will succeed gradually in breaking the begging bowl and coming out of the debt trap with the reforms,” PM Sharif said.
He also appealed to all political parties and provincial governments to support the successful implementation of the agenda for macroeconomic stability in the country, as per ARY News.
“We all have to work together. With the support of all the provinces, we will together resolve all the challenges and difficulties faced by the country”, he further added.
Significantly, during the five-day visit of the IMF mission to Islamabad for the final review of the stand-by program, it was noted that Pakistani authorities had shown interest in seeking another bailout. The stand-by arrangement is set to expire on April 11.
Before the stand-by arrangement, Pakistan had to fulfill IMF conditions, as per ARY News, which included revising its budget, increasing interest rates, and generating revenue through additional taxes, as well as raising electricity and gas prices.
The IMF confirmed Pakistan’s pursuit of a 24th medium-term bailout package to establish enduring structural reforms, according to Dawn.
The IMF announced the staff-level agreement on the successful completion of the existing short-term facility, confirming this development.
In its end-of-mission statement, the IMF stated that, pending approval from its executive board, the staff-level agreement would allow Pakistan to access approximately USD 1.1 billion, equivalent to 828 million special drawing rights (SDR), by late April.