Positive development reported between Pakistan and IMF on $7 billion bailout package
Pakistan and the International Monetary Fund have begun online talks on the ninth review of a $7 billion bailout package.
This was stated by IMF Islamabad representative Esther Pérez Ruiz.
“As part of the 9th review under the EFF, remote discussions continue between IMF staff and the Pakistani authorities over policies to re-prioritize and better target support toward humanitarian and rehabilitation needs,” Ruiz told Reuters in a statement.
The finance ministry also confirmed the ongoing talks between Pakistan and the global lender.
The Reuters quoting the ministry said: “The IMF understands that the floods have changed the macroeconomic assumptions on which the programme was designed. Detailed analysis is being conducted by their team using the data provided.”
The government has shared fiscal data, including for floods and related expenditures, with the IMF, and a team from the agency is expected to visit Islamabad soon, the ministry added.
Pakistan has been reeling from floods this year that killed more than 1,700 people, destroyed farmland and infrastructure and incurred a loss more than $30 billion, as per the estimate of the World Bank. The financial loss has exacerbated an economic crisis marked by decades-high inflation and dwindling foreign exchange reserves.