Pakistan will be optimistic about its IMF talks

Significance Islamabad now seeks a larger, longer-term bailout programme with the Fund. Finance Minister Muhammad Aurangzeb has suggested that a staff-level agreement on such a package could be secured by June or early July, after which the IMF Executive Board would have to approve the deal for disbursements to commence. Impacts The government will aim to privatise several loss-making state-owned enterprises in the months ahead. Pakistan may look for part of the new package to be under the IMF’s Resilience and Sustainability Facility. Islamabad will continue to rely heavily on financial assistance from friendly countries such as China and Saudi Arabia.