Pakistan To Seek $6 Billion In New IMF Loan Program: Report

Pakistan averted default last summer thanks to a short term International Monetary Fund bailout.

Islamabad:

 Pakistan plans to seek a new loan of at least $6 billion from the International Monetary Fund to help the incoming government repay billions in debt due this year, Bloomberg News reported on Thursday, citing a Pakistani official.

The country will seek to negotiate an Extended Fund Facility with the IMF, the report said, adding that the talks with the global lender were expected to start in March or April.

Pakistan averted default last summer thanks to a short term International Monetary Fund bailout, but the programme expires next month and a new government will have to negotiate a long-term arrangement to keep the $350-billion economy stable.

Ahead of the bailout, the South Asian nation had to undertake a slew of measures demanded by the IMF, including revising its budget, a hike in its benchmark interest rate, and increases in electricity and natural gas prices.

The IMF did not immediately respond to a Reuters’ request for comment on the Bloomberg report. Pakistan’s finance ministry could not be immediately reached for comment.

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