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Washington: Pakistan Seeks Bigger Loan And More Funds For Climate Change From IMF

The Ministry of Finance has prepared the return document for a new and much larger loan program from the International Monetary Fund (IMF), ministry sources informed ProPakistani.

Finance Minister Muhammad Aurangzeb has already arrived in Washington and will meet IMF Managing Director Kristalina Georgieva at the earliest convenience.

Sources said Aurangzeb will make two requests for a new bailout i.e. securing funds through the lender’s Extended Fund Facility and additional support to address climate change.

Sources said the Finance Division has put together a briefing outlining measures aimed at tackling climate change and details of the upcoming budget allocation which will be presented to IMF officials. Meanwhile, Governor State Bank of Pakistan Jameel Ahmed and the Secretary Finance Division will share economic figures with the lender.

It is expected that Aurangzeb’s meeting with Georgieva would likely result in the IMF Mission visiting Pakistan in May 2024 to further negotiate terms. This mission wi
ll collaborate with Pakistan’s economic team to formulate the new loan program and draft the budget for the upcoming financial year, sources said.

Besides the high-profile IMF engagement, Aurangzeb’s economic team is also scheduled to meet with World Bank officials to discuss additional financing, sources added.

The IMF ministerial meetings are set to take place from April 17 to 19, with supplementary activities scheduled for April 15-20.

Aurangzeb’s team will also meet finance ministers from China, Saudi Arabia, the UAE, Turkey, and other friendly nations in attendance.

Source: Pro Pakistani