The International Monetary Fund (IMF) confirmed that it is in discussions with Pakistan regarding a 24th bailout programme under the Extended Fund Facility (EFF), signalling a significant development in the country’s ongoing economic negotiations.

IMF Communication Director Julie Kozack, during a press briefing, refrained from commenting directly on the status of a staff-level agreement, suggesting that the talks are still in progress.

She stated, “A mission team led by Nathan Porter is currently meeting with Pakistani authorities to discuss the next phase of our engagement.”

Kozack elaborated on recent IMF activities in Pakistan, noting that on April 29th, the IMF Executive Board completed the second review of the stand-by arrangement for Pakistan, enabling a disbursement of approximately $1.1 billion.

“The completion of this review reflects the authorities’ robust policy efforts during the stand-by arrangement, which contributed to stabilising the economy,” she explained.

Addressing further queries, Kozack indicated that the mission is actively working on the ground and that their findings would be communicated upon the mission’s completion. 

Pakistan is seeking a substantial $6 to $8 billion bailout package from the IMF over a three- to four-year period to address its financial difficulties.

The IMF’s technical team arrived in Pakistan on May 10 to engage in discussions regarding the new loan programme and budget preparations.

These talks come at a critical time for Pakistan, which is grappling with considerable economic challenges, including the failure of a tax amnesty scheme proposed by the IMF. The outcome of these negotiations will be pivotal in determining Pakistan’s economic stability and future financial policies.