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ISLAMABAD: Pakistan has been reportedly seeking a Bangladesh-style deal with the International Monetary Fund (IMF) and exploring the possibility of increasing the program to $7.5-8 billion.
According to the media reports, the country is considering various options to increase the bailout package of the International Fund.
Pakistan can increase the IMF fund from 6 billion dollars under the specific quota of special rights. It is also reported that Pakistan had requested the increase of the fund in the standby program of June 2023, however, the IMF decided to postpone the matter till the next program.
Climate finance will be sought to expand the Expanded Fund Facility program. The International Monetary Fund provides affordable long-term financing for countries dealing with climate change and pandemics.
According to the details, the Pakistani authorities are looking for options to increase the upcoming IMF bailout package to 7.5 to 8 billion dollars and one of the possibilities can be the application of climate finance with the Extended Fund Facility (EFF).
If this arrangement is finalized, Pakistan can increase the size of the program under the EFF from $6 billion to $7.5 to $8 billion, considering the specific quota available under Special Drawing Rights.
