The lender has confirmed that the International Monetary Fund’s (IMF) delegation will be visiting Pakistan this month to engage in discussions regarding a new program. This visit comes as Islamabad commences its annual budget-making process for the upcoming financial year.
Pakistan recently concluded a $3 billion short-term program to prevent a sovereign default. However, Prime Minister Shehbaz Sharif’s administration is emphasizing the necessity of a new, longer-term program.
The International Monetary Fund (IMF) mentioned in an email to Reuters that a delegation is scheduled to visit Pakistan in May to discuss the fiscal year 2025 budget, policies, and reforms under a potential new program aimed at benefiting all Pakistanis.
The federal government’s financial year spans from July to June, and the budget for fiscal year 2025, the first under PM Shehbaz’s leadership, must be presented by June 30.
The IMF response to Reuters did not provide specific details regarding the visit dates, program size, or duration.
According to the IMF statement, “Prioritizing reforms at this moment holds more significance than the program’s scale, which will be determined by the reform package and balance of payments requirements.”
Pakistan narrowly avoided default last summer, and its $350 billion economy has stabilized after the completion of the previous IMF program. Inflation has decreased to around 17 percent in April from a high of 38 percent last May. The government is still grappling with a significant fiscal deficit, and while it has managed to control the external account deficit through import restrictions, this has led to stagnant growth. Growth is projected to be around 2 percent this year, compared to negative growth last year. Finance Minister Muhammad Aurangzeb mentioned in an interview with Reuters that Pakistan aims to finalize the details of a new IMF loan in May. The country is anticipated to request at least $6 billion and seek additional financing from the Fund through the Resilience and Sustainability Trust.
