ISLAMABAD: The size and duration of a new International Monetary Fund (IMF) loan programme will be determined by the Fund mission as is the usual practice.

This was the consensus in background interactions by this correspondent with the relevant staff who said: “instead of our desire, we will have to adjust according to the structured programme on offer by the IMF”.

During his first interaction with media on March 12, 2024 after assuming the office, Finance Minister Muhammad Aurangzeb had said that Pakistan would be seeking ‘larger and longer programme from the IMF.’

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In 2008, the largest loan of $7.2 billion was approved by the IMF for Pakistan. However, Pakistan has drawn $4.9 billion owing to its failure to implement the agreed reform in the taxes and power sector.

Sources added that “no one has any clarity as to what would be the size and duration of the next programme until initial discussion in this regard are held.” They added that normally extended fund facility (EFF) is a three-year programme.

Finance Minister Muhammad Aurangzeb is expected to leave for Washington on April 13 to attend the World Bank and IMF spring meeting and is likely to hold discussion with the IMF for the new programme.

Copyright Business Recorder, 2024