Pakistan to discuss Extended Fund Facility with IMF next month, says finance minister

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Pakistan to discuss Extended Fund Facility with IMF next month, says finance minister
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PC party leader attends the protest in support of fishermen | SaltWire #newsupdate #newfoundlandISLAMABAD - Pakistan will discuss an Extended Fund Facility with the International Monetary Fund in Washington next month, Finance Minister Muhammad Aurangzeb said on Friday, as the country looks to alleviate a full-scale economic crisis.

Cash-strapped Pakistan's standby $3 billion arrangement with the global lender expires on April 11, and the two sides reached a staff-level agreement regarding the disbursal of the final tranche of $1.1 billion earlier this week."We have expressed our strong interests in an Extended Fund Facility with the IMF, but the quantum is not clear yet," Aurangzeb said at a media briefing, adding that the lender was"very receptive" to the request.

The global lender's rescue package last summer had helped Pakistan avert a sovereign default but, to secure it, the country had to revise its budget, and raise interest rates, taxes, and electricity and gas prices. As a result, during the period, the country struggled through inflation as high as 38%, historic depreciation in its currency, and contraction of the economy.ADVERTISEMENT

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