AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Washington DC, Pakistan’s Finance Minister Muhammad Aurangzeb disclosed in an interview with AFP that Pakistan has initiated discussions with the International Monetary Fund (IMF) for a new multi-billion dollar loan to extend its economic reform efforts. The negotiations follow the nearing completion of a nine-month, $3 billion loan program aimed at averting a balance-of-payments crisis.
According to Press Information Department, Minister Aurangzeb, who assumed office last month after a career in banking, emphasized the improved market confidence and the necessity of a more substantial and prolonged IMF engagement. The discussions, which began this week, target a multi-year arrangement aimed at supporting Pakistan’s structural reforms.
The IMF confirmed its readiness to discuss a successor program as the current Stand-by Agreement concludes, signaling continued cooperation in addressing Pakistan’s economic challenges. Concurrently, Minister Aurangzeb is attending the IMF and World Bank spring meetings in Washington, focusing on global economic stability and strategies to combat climate change and aid heavily indebted nations.
The meetings occur against the backdrop of recent political turbulence in Pakistan, including controversial elections and economic pressures necessitating austerity measures by the newly formed coalition government. Aurangzeb expressed optimism about entering detailed negotiations by mid-May and underscored the strategic importance of balancing Pakistan’s trade relationships with the United States and China amid global tensions.
Additionally, the Finance Minister highlighted ongoing privatization efforts, including the sale of Pakistan International Airlines, as part of broader economic reforms intended to enhance efficiency and attract foreign investment. These initiatives are part of Pakistan’s strategy to stabilize its economy and foster sustainable growth amid challenging global conditions.