ISLAMABAD: Pakistan has formally requested an EFF bailout package of $6-8 billion from the IMF, with the possibility of further expansion through environmental financing.
However, its actual size and time frame will be determined only when the parties agree on its major features in May 2024.
This representative sent a message to the Pakistani delegation that went to Washington, Pakistan has also requested to send a review mission of the IMF to Pakistan in May 2024 so that the details of the bailout package for the next three years can be decided.
Although Pakistani officials are trying to present a rosy picture of Pakistan’s economy to the IMF, the IMF’s Regional Economic Outlook for the Middle East and Central Asia department has said that Pakistan’s external balance is in a precarious position, including Eurobonds reflect the repayment of existing debt.
Officials of International Financial Institutions advise Pakistan to take IMF short-term program
“Where inflationary pressures persist, monetary policy should remain tight and adopt a data-driven approach, closely monitoring risks to contain inflationary increases,” the report said.
These countries include Egypt, Kazakhstan, Pakistan, Tunisia, and Uzbekistan, the Middle East and Central Asia geographical regions are affected by conflicts and these regions include the Middle East, North Africa, Afghanistan, and Pakistan, only MENAP in sub-Saharan Africa. Many conflicts have doubled since May 2010.
Furthermore, conflicts in these regions may last longer than in other regions, 6 economies away from the West Bank and Gaza and Pakistan have been experiencing conflict since the beginning of 2024, these countries include Iraq, Pakistan, Somalia, Sudan, Syria, and Yemen. Included.
A country is considered to be in conflict when it has recorded 25 combat-related deaths between January 1 and March 8, 2024, as recorded by the Armed Conflict Location and Event Data Project.
Economic performance in the region was projected to improve in the case of Pakistan in 2023, but the 2024 forecast was nevertheless revised downward to 2.6 percent, with lower hydrocarbon production in some economies weighing on growth. will have.
Notably, the conflict between Gaza and Israel has worsened an already challenging situation, and disruptions in shipping through the Red Sea have added to the uncertainty.
Furthermore, the growth outlook describes Pakistan’s recovery as uneven against a backdrop of armed conflict, dependence on hydrocarbons, and persistent structural challenges.
Pakistan’s economy was estimated to grow by 2 percent in 2024 after shrinking in 2023, and this was attributed to the agriculture and textile sectors.
According to the report, external buffers (foreign exchange reserves) in emerging markets and their border economies improved in 2023.