News Flash
Pakistan: Pakistan intends to request a new loan of at least $6 billion from the International Monetary Fund (IMF). The purpose of the loan is to assist the incoming government in repaying billions of dollars in debt due this year. The report states that Pakistan plans to negotiate an Extended Fund Facility with the IMF, with talks expected to commence in March or April.
Pakistan avoided default last summer with the help of a short-term bailout from the International Monetary Fund. However, this program is set to expire next month, and the incoming government will need to negotiate a long-term agreement to maintain stability in the $350 billion economy.
Prior to receiving the bailout, the South Asian nation had to implement several measures requested by the IMF. These measures included revising its budget, raising its benchmark interest rate, and increasing electricity and natural gas prices.
Reuters' request for comment on the Bloomberg report was not immediately responded to by the IMF. Additionally, Pakistan's finance ministry was not immediately available for comment.