Pakistan to finalize an IMF deal next month: Miftah Ismail

Pakistan to finalize an IMF deal next month: Miftah Ismail
  • According to Miftah Ismail, the IMF has been asked to provide $2 billion in additional funding.
  • According to the finance minister, the country expects roughly $5 billion from the Fund.

ISLAMABAD: Finance Minister Miftah Ismail said on Saturday that the government and the International Monetary Fund (IMF) would reach a staff-level agreement next month, in June.

The federal government decided to hike the price of petroleum products by Rs30 on Thursday, raising hopes that the IMF programme would be revived because of the subsidies offered on oil and power.

The money — under the Extended Fund Facility (EFF) — would be released after final clearance by the IMF board, Miftah stated at a press briefing alongside Minister of State for Finance Ayesha Ghous Pasha.

Pakistan has asked the Fund to extend the programme by one year and provide an additional $2 billion, according to the minister. The Fund have to provide $3 billion.

Pakistan expects roughly $5 billion from the Fund if the international money lender agrees to release the additional funds, according to the finance minister.

He explained that the IMF programme is vital not only because the country receives financing from the Fund, but also because it helps open doors to further funding from multilateral institutions such as the World Bank and the Asian Development Bank.

Pakistan will receive money from multilateral organisations after the IMF distributes the last tranche, according to the finance minister, who noted that $8.9 billion is already in the pipeline from the World Bank.

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