IMF's Unscheduled Pakistan Visit: Bridging External Financing Gap

The International Monetary Fund (IMF) is set to conduct unscheduled performance review discussions in Pakistan to address a USD 2.5 billion external financing gap for the fiscal year. The talks, led by IMF Mission Chief Nathan Porter, aim to assess Pakistan's external financing needs as the country faces delays in securing loans.

The International Monetary Fund (IMF) plans unscheduled performance review discussions in Pakistan to address the country’s USD 2.5 billion external financing gap for this fiscal year, according to media reports. The discussions, slated to begin next Tuesday, will examine Pakistan’s need for new foreign loans, as some anticipated funds have yet to materialize.

Nathan Porter, IMF Mission Chief, will head the discussions, formally starting with Finance Minister Muhammad Aurangzeb. The IMF's unexpected arrival comes amidst efforts by Pakistan to manage its external debt, totaling USD 5 billion for 2024-2027. Improvements in exports and remittances might reduce the gap, but loans remain essential for debt repayment, mainly owed to Western financial institutions.

Pakistani officials are hopeful of securing necessary funding, including persuading Riyadh to extend a USD 1.2 billion oil facility. Pakistan is also pursuing a USD 1 billion loan from Dubai Islamic Bank, while seeking rescheduling of USD 3.4 billion owed to China's Exim Bank. With unmet targets in tax collection, the IMF's review will extensively evaluate Pakistan's macroeconomic framework projections.

(With inputs from agencies.)