An International Monetary Fund (IMF) delegation is scheduled to visit Pakistan this month to discuss new programmes, the financial institution said on Sunday, ahead of Islamabad starting its annual budgeting process for the next fiscal year. confirmed.
Pakistan completed a $3 billion short-term program last month that helped it avoid default on its sovereign debt, but Prime Minister Shehbaz Sharif’s government has stressed the need for a new long-term program.
“The mission will visit Pakistan in May to discuss the FY25 budget, policies and reforms under potential new programs for the welfare of all Pakistanis,” the IMF said in an emailed response. Ta. Reuters.
The federal government’s fiscal year runs from July to June, and the 2025 budget, the first under Prime Minister Shehbaz’s new government, must be submitted by June 30.
In its response, the IMF did not specify the dates of the visit or the size or duration of the program. Reuters.
“Accelerating reforms now is more important than the size of the program, which will be determined based on the reform package and balance of payments needs,” the IMF statement said.
Pakistan narrowly avoided default last summer, and since the completion of the last IMF program, its $350 billion economy has stabilized and inflation has fallen from a record high of 38% in May last year to around 17% in April. did.
Although the government is still grappling with large fiscal shortfalls and has curbed the external balance of payments deficit through import control mechanisms, this has come at the cost of sluggish growth, with growth this year compared to last year’s negative growth. It is expected to be around 2%.
Previously, in an interview, ReutersFinance Minister Mohammad Aurangzeb said the country hopes to agree on the contours of a new IMF loan in May.
Pakistan is expected to seek at least $6 billion and request additional financing from a fund under the Resilience and Sustainability Trust.
