Achi news desk-
WASHINGTON (TRADE DESK) Finance Minister Mohammad Aurangzeb told Reuters that Pakistan hopes to agree on a new IMF loan format in May, and that rating agencies will be able to base its return to international debt markets.
The finance minister said the current $3 billion contingency arrangement program with the IMF will expire at the end of April, but now the government wants a wider loan program to bring economic stability to the country and provide security under the government, the necessary economic. amendments could be made.
“We expect the IMF mission to be in Islamabad around mid-May and that’s when some of these forms will start to emerge,” said the finance minister.
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He declined to say what size program the government hopes to secure, although at least $6 billion is expected from Pakistan.
He added that once the IMF loan is agreed, Pakistan will also request additional funding from the Fund under the Resilience and Sustainability Trust.
He said that the loan situation also looks much better.
The finance minister also said that our bilateral loans, including the loan from China, are being rolled over, so in that sense, I think we are in a good position and I don’t see any major problem during the two next financial year. To come, because we need to pay about $25 billion every fiscal year.
Pakistan is also hoping to return to international capital markets, possibly with green bonds.
However, the finance minister says that a little more work has to be done before then.
“We have to go back to a certain hierarchical environment,” he said. Initiating discussions with rating agencies, he said the government hopes to improve its sovereign status in the next financial year.
Any international capital market announcement is likely to take place in the 2025/2026 financial year.
