IMF likely to be talked for another programme, says Shamshad

ISLAMABAD: Caretaker Finance Minister Dr, Shamshad Akhtar has said that the interim government will try to talk to the IMF for the next program as the nation will need the lender’s help to consolidate macro-economic stability.

She said that the country’s foreign reserves will jump in December after pledges made by global lenders materialize.

The International Monetary Fund (IMF) declared on Wednesday, following successful talks with Pakistan’s interim government, that although the country is experiencing a nascent recovery, it remains vulnerable to significant external risks. The interim government’s term concludes in February with the upcoming national elections to select a new administration.

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Pakistan opted to defer plans for raising funds from the global bond market, citing unfavorable pricing conditions. The government is actively exploring alternative funding sources. Having secured a nine-month loan program from the IMF in July, Pakistan prevented a default on its debt. The completion of the first review, coupled with anticipated inflows from other lenders, is anticipated to enhance the country’s diminishing reserves.

The IMF agreement provides a favorable outlook for Pakistan’s caretaker government, led by Prime Minister Anwaar-ul-Haq Kakar, who is striving to secure $6.3 billion in loans from the World Bank, Asian Development Bank, and Islamic Development Bank, along with approximately $10 billion in bilateral funding from creditor nations.

Investors are expressing confidence in Pakistan’s fiscal recovery, propelled by the IMF loan, leading to a more than 50% return on its dollar bonds this year. Since the IMF deal in July, the country’s benchmark equity index, the KSE-100 Index, stands out as one of the best-performing globally.