Pakistan needs another IMF bailout, says PM Sharif amid economic woes

Prime Minister Shehbaz Sharif said that the International Monetary Fund (IMF) concluded the review for issuance of the last tranche of USD 1.1 billion which hopefully be received by next month

Pakistan Prime Minister Shehbaz Sharif said on Thursday that the financially beleaguered nation needed another long-term bailout from the International Monetary Fund (IMF) to stabilise its fragile economy, ARY News reported.

"A new tranche of loan is likely to be received from the IMF in a few days, however, we would need another programme," he said while addressing the session of the Special Investment Facilitation Council (SIFC) apex committee attended by civil-military leadership.

The comments came a day after the IMF agreed to a staff-level agreement with Islamabad which, if approved by its board, would disburse the last tranche of USD 1.1 billion under an existing USD 3 billion standby arrangement.

He said that the International Monetary Fund (IMF) concluded the review for issuance of the last tranche of USD 1.1 billion which hopefully be received by next month.

"We will succeed gradually in breaking the begging bowl and coming out of the debt trap with the reforms," PM Sharif said.

He also sought the support of all political parties and the provincial governments to successfully implement the agenda of macroeconomic stability in the country, ARY News reported.

"We all have to work together. With the support of all the provinces, we will together resolve all the challenges and difficulties faced by the country", he further added.

Notably, the IMF mission that visited Islamabad for five days on the last review of the stand-by programme said Pakistani authorities expressed interest in yet another bailout.

The stand-by arrangement expires on April 11.

Ahead of the stand-by arrangement, Pakistan had to meet IMF conditions including revising its budget, and raising interest rates, as well as generating revenue through more taxes and hiking electricity and gas prices, ARY News reported.

The International Monetary Fund confirmed that Pakistan was seeking a 24th medium-term bailout package for a permanent push towards longstanding structural reforms, reported Dawn.

The IMF confirmed this while announcing the staff-level agreement on the successful completion of the existing short-term facility.

The IMF, in its end-of-mission statement, said that subject to the approval of its executive board, the staff-level agreement would enable Pakistan to access about USD 1.1 billion -- 828 million special drawing rights (SDR) -- by late April.