Pakistan set to secure new IMF bailout package: sources

ISLAMABAD: The government of Pakistan will not extend current International Monetary Fund (IMF) program, which is set to end on June 30, citing sources ARY News reported on Thursday.

Pakistan intends to secure a new bailout from the IMF.

Preparations have been underway by the Ministry of Finance to seek new IMF package in August.

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

“There will be 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 bound to make payments of 22 to 24 billion dollars in the next fiscal year’s budget,” according to sources.

Sources at the finance ministry said that the new loan package will be more demanding than the current bailout. “The new bailout program will be for more than three years,” sources added.

According to reports, Prime Minister Shehbaz Sharif had informed the fund’s Managing Director Kristalina Georgieva about Pakistan’s intention to secure a new bailout.

The prime minister had revealed Pakistan’s intentions to sign a follow-up bailout package during his telephonic conversation with the IMF managing director on the weekend.

Pakistan’s current $6.5 billion programme stood derailed, and the efforts made to revive it for the past seven months could not materialize.