'Longer and larger' bailout: IMF in talks with Pakistan for multi-billion dollar package - Times of India

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NEW DELHI: The International Monetary Fund (IMF) has confirmed that discussions with

Pakistan

are ongoing regarding the 24th

bailout

program under the Extended Fund Facility (EFF), according to a report by ARY News.

Pakistan is reportedly seeking a bailout package between $6 billion and $8 billion from the IMF for a duration of three to four years to address its

financial crisis

.

IMF communication director Julie Kozack mentioned that the negotiations are still in progress, refraining from commenting on a staff-level agreement, during a press briefing. "Right now, a mission team led by Nathan Porter is meeting with Pakistan authorities this week to discuss the next phase of our engagement," she said.

Kozack revealed that on April 29, the IMF executive board completed the second review of the stand-by arrangement for Pakistan, allowing a disbursement of approximately $1.1 billion. "The completion by our Board of the second and final review of the stand-by arrangement reflected the authorities' strong policy efforts during the time of the standby, which did help stabilize the economy," she added.

She also said that the ongoing mission will communicate its findings once the work is completed. "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," Kozack said.

Meanwhile, Esther Perez Ruiz, the IMF's resident representative for Pakistan, announced that a team headed by Porter would engage with Pakistani officials to discuss the nest steps.

She explained that the objective of the

talks

was to "lay the foundation for better governance and stronger, more inclusive, and resilient economic growth that will benefit all Pakistanis", according to a report by Geo News.

On May 10, an IMF technical experts' team arrived in Pakistan to discuss a new loan program and budget preparations.

Also, earlier this week, the IMF urged the Federal Board of Revenue (FBR) to revoke the discretionary powers held by the board and the cabinet in granting tax incentives. Additionally, the IMF has called for amendments in tax laws concerning NGOs, charitable organizations, and taxed pensioners, according to Geo News.

(With agency inputs)