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Pakistan Finance Ministry: IMF And Islamabad Open Talks About a New Loan

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FILE PHOTO: International Monetary Fund logo is seen inside the headquarters at the end of the IMF/World Bank annual meetings in Washington, U.S., October 9, 2016. REUTERS/Yuri Gripas/File Photo

(CTN News) – The Pakistani Ministry of Finance announced on Monday that the IMF has begun preliminary discussions with the government of Islamabad concerning the development of a new loan program. Everyone in the public was provided with the statement.

In the meeting that took place, Nathan Porter, who is in command of the mission, and Muhammad Aurangzeb, who is the Minister of Finance of Pakistan, met. It was stated that the meeting was held with the intention of “kick-starting the discussions on further engagement with the fund.”

During the period of the standby agreement, Aurangzeb reportedly gave the team an update on the accomplishments that had been done in the macroeconomic indicators.

A representative from the ministry has provided this information. In addition to this, he stressed the importance of the government’s willingness to move forward with the reform plan and further improve it.

Pakistan is likely to submit a proposal to the Fund for extra financing under the Resilience and Sustainability Trust. This request will be in addition to a request for a minimum of six billion dollars. There is a substantial possibility that Pakistan will submit this request. The suggestion will be presented to the Fund for consideration.

The International Monetary Fund (IMF) issued a warning ahead to the meetings, noting that the risk of a disastrous outcome for the economy of Pakistan remained unusually high. This warning was issued before the meetings.

In order to be prepared for the annual budget-making process that will take place for the following fiscal year, which will begin on July 1st, the International Monetary Fund (IMF) has dispatched a group to Islamabad. This is in order to receive the necessary preparations. In order to complete the necessary preparations for the upcoming fiscal year, this operation will be carried out.

A short-term program with a total value of three billion dollars was successfully completed by IMF Pakistan last month, which was a crucial role in keeping the country from defaulting on its sovereign debt for the very first time. Pakistan was able to successfully finish the program.

The city of Islamabad has made a IMF statement that emphasizes the relevance of a new endeavor that would take place over a longer period of time, including the assertion that it is vital.

After the completion of the standby agreement, the economy of the South Asian nation, which is now valued at 350 billion dollars, has resumed its usual course of operation.

This is a significant development. In April, inflation IMF remained around 17%, which is a significant decrease from the record high that was reached in May of the previous year. This is in comparison to the record high of 38% that was reached in May of the previous year.

Despite this, it continues to struggle with a big gap in its existing financial resources, which is something that the organization is currently suffering.

There has been no change in the rate of economic growth as a direct result of the IMF  installation of import restrictions, despite the fact that the country has been successful in managing its external account deficit. Despite the fact that it has been successful in controlling the deficit, this is the situation.

In comparison to the negative growth that occurred in the previous year, it is projected that the growth of the GDP will be roughly 2% this year, which will finish on June 30th.

This is a significant improvement in comparison to the growth that occurred in the previous year. When the 30th of June arrives, this year will come to a conclusion.

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Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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