Pakistan to initiate discussions for a new IMF loan program amid economic challenges

Pakistan has announced plans to embark on a new IMF loan program, citing the need for financial support amidst economic challenges. The PML-N-led government has initiated steps in this regard, with the Ministry of Finance spearheading the process. The country aims to secure a loan ranging from $6 to 8 billion, with expectations of stricter conditions from the IMF. Managing escalating debts and existing loan repayments pose significant hurdles, prompting the government to prioritize negotiations with the IMF. To address financial constraints, tough decisions on electricity and gas prices are anticipated, alongside measures to stabilize the market exchange rate. The completion of the existing IMF program is deemed essential, with negotiations for the second review pending as the short-term program nears its end in April.