Finance Minister Aurangzeb seeks IMF assistance for Pakistan's financial challenges

Pakistan is set to seek financial assistance from the International Monetary Fund (IMF) through two avenues – the extended fund facility (EFF) and additional climate financing. Finance Minister Muhammad Aurangzeb is currently in Washington for discussions with the IMF to secure a new, larger program. The country is awaiting the release of $1.1 billion under the stand-by arrangement (SBA) signed during the previous government's tenure. An IMF team recently visited Islamabad, leading to a staff-level agreement that is awaiting final approval this week.

The government emphasizes the urgent need for another IMF bailout to address financial challenges and meet debt obligations. During the upcoming talks following the IMF and World Bank spring meetings, Pakistan will submit applications for financial aid, including climate change initiatives in the budget. The government aims to convince the IMF by demonstrating progress on set targets, such as energy tariff adjustments and privatization efforts, particularly concerning PIA.

If successful, an IMF mission is expected to visit Pakistan next month to finalize the new deal and budget details. Additionally, discussions with the World Bank will focus on increasing financing opportunities to support Pakistan's economic goals.