Pakistan has initiated discussions with the International Monetary Fund (IMF) regarding a new loan agreement aimed at supporting its economic reform efforts, as stated by its new finance minister to AFP on Monday.
The South Asian nation is approaching the conclusion of a nine-month, $3 billion loan program with the IMF, which was implemented to address a balance-of-payments crisis that nearly led to default last summer.
As the final $1.1 billion tranche of this agreement is expected to be approved later this month, Pakistan has commenced negotiations for a new multi-year IMF loan program valued at “billions” of dollars, Finance Minister Muhammad Aurangzeb disclosed during an interview in Washington.
“It’s really for that purpose that, during the course of this week, we have initiated the discussion with the Fund to get into a larger and an extended program,” said Aurangzeb.
While in Washington, Aurangzeb will participate in the spring meetings hosted by the IMF and World Bank, beginning in earnest on Tuesday. His visit is driven by two primary objectives: aiding countries in their efforts to combat climate change and providing assistance to the world’s most heavily indebted nations.
Discussing the imperative to broaden the tax base and overhaul the tax collection system, the minister highlighted that these reforms would not only enhance revenue generation but also foster transparency and enhance client satisfaction.
Furthermore, he underscored the importance of promoting public-private partnerships, noting that the government alone cannot address all challenges.
