Pakistan set to secure new IMF bailout package: sources

Pakistan intends to secure a new bailout from the IMF. Preparations have been underway by the Ministry of Finance to seek a new IMF package in August.

Special Assistant Tariq Bajwa and the secretary of finance working on a bid to seek a new IMF loan package, sources said.

“There will be an imminent threat of default if Pakistan didn’t materialize a new loan package with the international monetary fund,” sources said.

“Pakistan has to repay nine to 11 billion dollars more in international payments by December this year,” sources said.

“Overall, the country is bound to make payments of 22 to 24 billion dollars in the next fiscal year’s budget,” according to sources.

According to insiders, “the country is on track to make payments totaling 22 to 24 billion dollars in the next fiscal year’s budget.”

According to finance ministry sources, the new credit package will be more stringent than the existing bailout. “The new bailout programme will be for more than three years,” sources stated.

According to reports, Pakistan’s Prime Minister Shehbaz Sharif told the fund’s Managing Director Kristalina Georgieva of the country’s plan to seek a second bailout.

During a phone call with the IMF managing director over the weekend, the prime minister indicated Pakistan’s plan to sign a follow-up rescue agreement.

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