IMF agree to Pakistan’s request to increase the loan size from $6 billion to $8 billion

IMF loan

In talks with the International Monetary Fund (IMF), Pakistan made a major advancement when a finance ministry official said the Fund would increase its $6 billion loan programme to $8 billion.

The news comes after the IMF announced that it will send a mission to Pakistan in May after holding “multiple discussions” with Finance Minister Miftah Ismail and his staff in Washington.

Finance Minister Miftah Ismail told the press after his meetings with the International Monetary Fund (IMF) that Pakistan had “never defaulted” in its over 70-year history and will not do so in the future.

Read more: IMF proposes to tax wealthy people at uniform rate of 30%

Fuel Subsides Need To Be Curtailed: Miftah

When asked about the IMF’s demand that the government cut fuel subsidies, the finance minister said the government couldn’t sustain it and that it needed to be reversed.

Seventh Loan Review by IMF Reinstated

The finance minister noted that the seventh review was suspended during last administration and was restored by the current administration.

He stated that his conversations with the IMF, the World Bank, and the International Finance Corporation (IFC) had gone well, and that technical level discussions will begin on Tuesday.

“We would strive to have an accelerated personnel level agreement with them when the mission comes to Pakistan, and after that deal is signed, we will look forward to receiving another installment,” the finance minister said.

Miftah also said that he has asked the IMF to boost the fund’s value by more than $6 billion, with details to be worked out once the IMF mission arrives in Pakistan.

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