IMF support team reaches Pakistan to discuss new larger programme

• IMF team will discuss next programme with financial team.
• Some members of IMF team will reach Pakistan on May 16. 
• IMF team to stay in Pakistan for more than 10 days: sources. 

ISLAMABAD: An International Monterey Fund (IMF) team on Friday reached Pakistan to hold talks regarding the South Asian nation's request for a fresh bailout package under the Extended Fund Facility (EFF).

According to sources privy to the matter, a support team of the global lender will discuss the first phase of the next long-term loan programme with the country's financial team.

Moreover, the sources said that the advance party has reached Pakistan for talks while the IMF mission will arrive on the night of May 16. 

The team will receive data from different departments and will also discuss the upcoming budget for the fiscal year 2025 (FY2025), with the Ministry of Finance officials. 

The sources also revealed that the team will stay in Pakistan for more than 10 days. 

Pakistan sought a next bailout package in the range of $6 to $8 billion for the three years period under the EEF with possibility of augmentation through climate financing, The News had reported last month. 

Last week, Reuters reported that the mission will discuss the FY25 budget, policies, and reforms under a potential new programme for the welfare of all Pakistanis.

"Accelerating reforms now is more important than the size of the program, which will be guided by the package of reform and balance of payments needs," the IMF statement said.

Earlier, Finance Minister Muhammad Aurangzeb, while speaking to Reuters, said that Pakistan hopes to agree on the contours of a new IMF loan in May. 

“We expect the IMF mission to be in Islamabad around the middle of May — and that is when some of these contours will start developing,” said Aurangzeb.

He declined to outline what size programme the government hoped to secure, though Pakistan is expected to seek at least $6 billion.

Aurangzeb added that once the IMF loan was agreed, Pakistan would also request additional financing from the Fund under the Resilience and Sustainability Trust.