ISLAMABAD: With the Shehbaz Sharif-led government’s efforts to stabilize the nation’s economy, Finance Minister Muhammad Aurangzeb announced at the 2024 Islamabad Business Summit on Tuesday promising economic advancements, such as an increase in foreign exchange reserves expected to reach $10 billion by June.
He emphasized the necessity for energy sector reforms and underscored the importance of privatizing unprofitable enterprises.
Regarding the potential IMF bailout, Aurangzeb labeled it as a critical measure, highlighting that it’s typically considered as a last resort. This statement follows Islamabad’s recent formal appeal to the IMF for a new bailout package, estimated between $6 to $8 billion under the Extended Fund Facility (EFF), with potential augmentation through climate financing.
In a recent interview with The National, the Finance Minister indicated the IMF’s receptiveness towards considering a more substantial, longer-term program, with the specifics to be determined in May 2024. Pakistan has expressed interest in hosting an IMF review mission in May 2024 to finalize details for a three-year bailout package under the EFF program.
Despite optimistic assessments from Pakistani authorities, the latest Regional Economic Outlook (REO) from the IMF’s Middle East and Central Asia department highlights Pakistan’s deteriorating external buffers, largely attributed to ongoing debt service, including Eurobond repayments.
(Islamabad51_Newsdesk)
