New IMF Loan for Pakistan Possible, Officials Say

    Pakistan could apply for a new International Monetary Fund loan program upon the completion of IMF’s fifth review of the country’s current $11.3 billion standby arrangement in June, the Daily Times reports, citing official sources.

    Enforcement of several tax and expenditure measures by July would be among the benchmarks of the new program, according to the sources, whom the Daily Times did not identify.

    Meantime, Pakistani authorities and IMF representatives are currently in talks to set performance benchmarks for the fifth review of the country’s current loan program, the Lahore-based newspaper says. An IMF mission will visit Pakistan in May to review the implementation of these benchmarks.

    A positive review by IMF mission could pave the way for the release of $1.7 billion from the $3.6 billion funds from the current loan program and allow Pakistan’s economic managers to request a new loan program for the next fiscal year, the Daily Times says.

    A favorable assessment could also prompt IMF to issue a letter of comfort, which some multilateral banks are reportedly seeking before releasing fresh assistance to Pakistan, the newspaper adds.

    >> Multilateral Banks Halt Aid to Pakistan

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    About the author

    • Ivy Mungcal

      As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.