The Ministry of Finance is discussing a potential new three-year loan with the International Monetary Fund (IMF) under the Extended Fund Facility Program. ProPakistani sources suggest the likelihood of signing a significant $8-10 billion program with the IMF after the current one concludes on March 31st, 2024.
The Ministry of Finance aims to secure this new loan by assuring the IMF of its commitment to meet all conditions set forth under the Extended Fund Facility. Prior to finalizing the agreement, the Ministry plans to submit IMF proposals for the federal budget 2024-25.
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The terms of the proposed loan program may lead to an increase in electricity and gas prices, alongside further reductions in subsidies. Sources indicate that these terms are expected to be more stringent compared to the existing standby arrangement.