ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb expressed optimism on Sunday Pakistan would secure a “larger and longer” bailout agreement in its negotiations with the International Monetary Fund (IMF) in July, following the approval of the $67.76 billion federal budget.
Pakistan began discussions about a new loan with IMF officials soon after completing a $3 billion program that helped the country stave off a sovereign debt default last year.
The international lending agency sent its delegation to Pakistan in May to hold negotiations with the new government.
Prime Minister Shehbaz Sharif also confirmed during a speech at the National Assembly on Tuesday that his administration had prepared the budget in consultation with the IMF, after repeatedly emphasizing the importance of securing another bailout facility to keep macroeconomic reforms on track.
“I have already said we are moving in a positive way,” the finance minister said while discussing the fresh IMF program during a media interaction in the federal capital. “During July we should get into a good agreement.”
“I am very optimistic that we will be able to take it through the finish line for an extended fund program, larger and longer in nature,” he added.
Pakistan has sought IMF loans in recent years due to a combination of economic challenges, including significant fiscal and current account deficits, declining foreign exchange reserves and rising public debt.
These economic vulnerabilities have been exacerbated by external shocks like fluctuating commodity prices and internal challenges such as political instability and policy inconsistency.
The government has maintained the country’s economy is on the mend but considers the new bailout important to ensure a substantial financial cushion.
The finance minister reiterated that he viewed the program being funded and supported by the IMF as part of Pakistan’s own endeavor to strengthen itself economically.
“We need the IMF because not only these IFIs [international financial institutions] but even our firendly nations want a backstop which is the fund program,” he continued. “What we have to do in the next three years to make sure this is the last program.”
He mentioned he had already been in virtual discussions with the IMF to move toward a staff-level agreement.
Aurangzeb said the basic framework, including the prior actions, had been formulated while the IMF delegation was in Pakistan, saying that the structural benchmarks of the program had been the same for the last three or four years while Pakistan had not implemented.
“Now we have told them to trust us and we will get this done,” he added.
Pakistan finance minister says ‘optimistic’ for ‘larger and longer’ IMF bailout program in July
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Pakistan finance minister says ‘optimistic’ for ‘larger and longer’ IMF bailout program in July
- Muhammad Aurangzeb says virtual negotiations with the international lending agency are moving in a positive direction
- He also maintains Pakistan needs to work for the next three years to ensure that it never has to seek another IMF program
Pakistan PM invites Imran Khan’s party for talks after it signals openness to dialogue
- Barrister Gohar said a day earlier dialogue with the government should continue alongside any political movement
- Sharif says talks can only proceed on legitimate issues, ruling out what he calls ‘blackmailing’ or unlawful demands
ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday invited jailed former premier Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party for dialogue, saying harmony among political forces was essential for the country’s progress, amid reports that the opposition was seeking talks with the government.
Pakistan has seen deepening political polarization between the ruling coalition led by Sharif and opposition groups coalesced around Khan’s PTI, which has alleged a sustained state crackdown since Khan’s ouster in 2022.
PTI’s top leadership, including Khan and his wife, is serving prison sentences in multiple cases ranging from corruption charges to inciting violence against state institutions and attacks on government properties.
PTI has rejected all allegations as politically motivated. It has also disputed the results of the February 2024 general election that brought Sharif to power, saying the vote was manipulated to sideline Khan and his party.
“I read it in the newspaper today that PTI and its allies are calling for a dialogue,” Sharif said while addressing a cabinet meeting. “I had invited them to the assembly, and I had invited them earlier as well.”
“If they are ready for dialogue, then the government of Pakistan is absolutely ready,” he continued. “For the sake of Pakistan’s progress and prosperity, there should be harmony among all political parties.”
Sharif, however, said talks could not proceed on the basis of what he described as “blackmailing” or unlawful demands, adding that dialogue could move forward only on legitimate issues.
He said he was reiterating his earlier invitation for talks.
A day earlier, PTI Chairman Barrister Gohar Ali Khan told Bol TV that dialogue with the government should not be ruled out, saying political movements should be accompanied by parallel engagement.
“The opposition must be given space,” he said. “I strongly support dialogue. Whatever movement takes place, dialogue should continue alongside it. This is something we should not give up.”
His statement came only days after Khan and his wife were sentenced to 17 years in prison on charges of understating the value of state gifts before acquiring them for personal use, a ruling that PTI leaders criticized as politically driven.
The government said the verdict was delivered after due legal process and should be respected.
