Pakistan Likely to Get $6 Billion Bailout From IMF This Month

Pakistan expects to secure a staff-level agreement with the International Monetary Fund (IMF) for a bailout package of more than $6 billion this month, Reuters reported on Wednesday citing Minister of State Finance and Power Ali Pervaiz Malik. “We hope to culminate this (IMF) process in the next three to four weeks,” the report quoted Malik, who also said, “I think it will be north of $6 billion”. Pakistan has addressed all of the lender’s requirements in its annual budget, he added. Finance Minister Muhammad Aurangzeb said last week he was quite optimistic that Pakistan will get a new and final bailout from the IMF. Many credit rating agencies and financial institutions have noted in brief reviews since April that Pakistan will strike an agreement with the Washington-based lender for a new four-year program by the end of July. “A larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Wall Street Bank Citi said in a note to clients in May 2024.