Pakistan in talks with IMF for 24th 'longer and larger' bailout programme

Islamabad [Pakistan], May 18 : The International Monetary Fund (IMF) confirmed that the talks with Pakistan are underway on the 24th 'longer and larger' bailout programme under the Extended Fund Facility (EFF), reported ARY News.

While addressing a press briefing, IMF Communication Director Julie Kozack, avoided answering about the staff-level agreement, indicating that the negotiations are still ongoing.

"Right now, a mission team led by Nathan Porter is meeting with Pakistan authorities this week to discuss the next phase of our engagement," Kozack said.

She noted that on April 29, the IMF Executive Board completed the second review of the stand-by arrangement for Pakistan, allowing a disbursement of about USD 1.1 billion, ARY News reported.

"The completion by our Board of the second and final review of the stand-by arrangement reflected the authority's strong policy efforts during the time of the standby, which did help stabilisation of the economy," Kozack said.

She further emphasised that there is a missing ongoing, and will communicate the findings of the mission in time.

"There is a mission on the ground, we will wait for them to complete their work and we will communicate the findings of the mission in due course," she said.

Pakistan is seeking a USD 6 billion to USD 8 billion bailout package from the global lender for three to four years, to deal with its financial crisis, as reported by ARY News.

On May 10, the IMF's technical experts' team arrived in Pakistan for talks on a fresh loan programme and budget preparations.

Pakistan has been dealing with significant economic challenges ahead of the new talks, including a failed tax amnesty scheme proposed by the IMF.

Earlier this week, the international lender urged the Federal Board of Revenue (FBR) to revoke the discretionary powers held by the Board and the cabinet in granting tax incentives. Additionally, it calls for amendments in tax laws pertaining to NGOs, charitable organisations, and taxed pensioners, Geo News reported.

Furthermore, the IMF highlights the adverse effects of special tax regimes in the construction sector, advocating for their removal to enhance tax efficiency.