In the upcoming annual spring meetings, Pakistan will formally approach the IMF for a fresh bailout package in

World News

At the approaching annual spring meetings of the Bretton Wood Institutions (BWIs), Pakistan has chosen to formally seek the international lender, the International Monetary Fund (IMF), for the medium-term Extended Fund Facility (EFF), according to a report by Geo News.

Pakistan has taken this decision with the addition of climate finance to the next bailout package.

The IMF’s review mission, which is anticipated to begin most likely in the first week of May to finalise the main details of the impending bailout package, will determine the extent and duration of the bailout.

“From April 15 to 20, 2024, in the upcoming annual spring meetings of BWIs known as the IMF and World Bank, we are all set to make a formal request to the IMF,The sources added that Pakistan has chosen to ask for climate funding to increase the Extended Fund Facility, which meant that a programme worth USD 6 to USD 8 billion might be secured.

“We are going to present our argument before the IMF management that Pakistan faced severe consequences of climate degradation and deserved support from the international community and donor agencies,” sources said.

According to reports, Islamabad will back the EFF, possibly increasing its funding through climate finance.

Geo News claimed that Saudi Arabia Holding Company CEO Mohammad Al-Qahtani said Saudi Arabia and Pakistan are moving quickly to achieve a big investment plan of USD 5 billion.

After Prime Minister Shehbaz Sharif met with Crown Prince and travelled to Saudi Arabia,

The agreements included investments in copper mines and a new oil refinery, as well as an increase in Saudi Arabian deposits at the State Bank of Pakistan from USD 3 billion to USD 5 billion.

Furthermore, these actions fit into a larger framework that was already achieved; Saudi Arabia is currently in talks to spend USD 21 billion in Pakistan.

This involves investing USD 7 billion to develop a copper mine and USD 14 billion to establish an oil refinery.

The investments are being made at a time when Pakistan is suffering from a dire economic crisis, high rates of inflation, and a dearth of foreign exchange.

According to Geo News, Pakistan hoped that these investments would boost its economy and generate new employment prospects.

The sources state that one IMF tool, the Resilience and Sustainability Facility (RSF), offered countries undergoing reforms to lower risks to future balance of payments stability, including those associated with climate change and pandemic preparedness, at a reasonable cost over a long period of time.

According to IMF projections, Pakistan’s total public debt will increase to ₹120 trillion in the medium term during the course of the next three to five years.

Related Posts