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Pakistan Prepares for New IMF Loan Program, Emphasizes Climate Change Mitigation

The Ministry of Finance is gearing up for a significant development as it prepares the groundwork for a new and expanded loan program from the International Monetary Fund (IMF), according to sources close to ProPakistani.

Pakistan Prepares for New IMF Loan Program, Emphasizes Climate Change Mitigation

Finance Minister Muhammad Aurangzeb has already embarked on a journey to Washington, where he is slated to hold discussions with IMF Managing Director Kristalina Georgieva at the earliest opportunity.

Sources reveal that Aurangzeb intends to make two primary requests for the new bailout package: first, securing funds through the lender’s Extended Fund Facility, and second, seeking additional support to address pressing climate change concerns.

The Finance Division has diligently compiled a comprehensive briefing that outlines proposed measures aimed at combating climate change. Additionally, detailed information regarding the allocation of the upcoming budget will be presented to IMF officials. Governor of the State Bank of Pakistan, Jameel Ahmed, and the Secretary of the Finance Division will also provide economic data to the lender.

Anticipating positive outcomes from Aurangzeb’s meeting with Georgieva, sources suggest that an IMF Mission is likely to visit Pakistan in May 2024 to engage in further negotiations and collaborate with Pakistan’s economic team. Their objectives will include formulating the new loan program and drafting the budget for the upcoming financial year.

In parallel with the IMF engagement, Aurangzeb’s economic team is scheduled to convene with World Bank officials to explore additional financing opportunities, adding another layer of complexity to Pakistan’s financial strategy.

The upcoming IMF ministerial meetings, scheduled from April 17 to 19, with supplementary activities from April 15 to 20, will provide a crucial platform for Pakistan’s economic representatives to engage with counterparts from various nations, including China, Saudi Arabia, the UAE, Turkey, and others.

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As Pakistan navigates through this critical phase of financial negotiations, the focus on securing funding for economic stability and addressing climate change underscores the nation’s commitment to sustainable development and resilience in the face of global challenges.

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