Pakistan Poised for New IMF Funding After Budget Approval

Pakistan’s Finance Minister Muhammad Aurangzeb expressed strong confidence on Sunday that the country will secure a new funding program from the International Monetary Fund (IMF). This optimism follows the approval of Pakistan’s annual fiscal budget, a crucial step as the nation seeks to stabilize its economy and avoid a debt default.

The recently passed budget, laden with tax measures, sets the stage for further negotiations with the IMF. Pakistan aims to obtain a loan between $6 billion and $8 billion, essential for sustaining the economy of South Asia’s slowest-growing country.

Speaking at a press conference, Aurangzeb emphasized the government’s commitment to finalizing the next IMF program, which he anticipates will be both larger and more prolonged than previous arrangements. “We are taking it forward; it is inevitable. I’m very optimistic that we’ll be able to take it through to the finish line for an Extended Fund Programme,” he stated, as reported by local broadcaster Geo News.

This development follows the completion of a short-term $3 billion IMF program in April, which provided temporary relief from the risk of a sovereign default. With the new fiscal plan now in place, Pakistan is positioning itself to secure the necessary funding to ensure long-term economic stability.

The news was initially reported by Reuters, highlighting Pakistan’s proactive steps towards securing IMF support and addressing its financial challenges while maintaining economic resilience.