Pakistan’s newly-elected PML-N-led government has decided to seek a fresh loan program from the International Monetary Fund (IMF), with the Ministry of Finance initiating action on the premier’s directives. The country aims to secure $6 to 8 billion, anticipating stricter IMF conditions. This move reflects the challenging task of managing increasing debts and repayment of existing loans, with the need to bolster revenue generation and balance payments. Tough decisions on electricity and gas price hikes are expected, while negotiations under the existing short-term IMF loan program are pending.
ISLAMABAD: Pakistan has decided to take a new loan program of the International Monetary Fund (IMF), ARY News reported on Tuesday, citing sources.
According to details, the newly-elected PML-N-led government has decided to avail a fresh IMF loan program, and the Ministry of Finance has initiated actions on the directives of the premier.
Pakistan is likely to seek $6 to 8 billion loan program from the international lender and for this immediate contact will be made with the IMF for negotiations. The sources further said the conditions of the IMF would be stricter this time.
The finance ministry said managing increasing debts and the repayment of existing loans pose a significant challenge for Pakistan.
They further said the finance ministry has emphasized the need to stay in the IMF program until there is an increase in revenue, local resources are generated, and it is essential to maintain a balance in payments and foreign exchange reserves.
The government will have to make tough decisions regarding increases in electricity and gas prices, and the market exchange rate is crucial to cope with external financial challenges.
The sources said completing the existing IMF loan program is also necessary. The short-term IMF loan program is expected to end in April, and negotiations for the second review under the short-term program are still pending.
The recent announcement by Pakistan’s government to pursue a new loan program with the International Monetary Fund (IMF) has raised both concerns and hopes within the country. The decision reflects the ongoing economic challenges faced by Pakistan, and the need to stabilize the financial situation through external support. The IMF’s assistance, if secured, could potentially aid in addressing the pressing economic issues and pave the way for reforms. However, it also underscores the importance of implementing sustainable fiscal policies and structural changes to ensure long-term stability and growth. The implications of this move are significant for both the government and the citizens, as it sets the stage for critical economic developments. As Pakistan embarks on this potential path towards an IMF loan program, the attention shifts to the strategies and outcomes that will shape the country’s financial future.
Source: ARY NEWS
Summary:
Pakistan’s PML-N-led government has initiated actions to secure a fresh IMF loan program, expected to be in the range of $6 to 8 billion. The Ministry of Finance is addressing the challenge of managing increasing debts and existing loan repayments, emphasizing the need to maintain a balance in payments and foreign exchange reserves. Stricter conditions from the IMF are anticipated, and the government may need to make tough decisions on electricity and gas prices. Negotiations for the second review under the short-term program are pending, with the aim of coping with external financial challenges.
Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Khabristan.pk for more information visit privacy policy
Leave a Comment