ISLAMABAD (Dunya News) – Pakistan plans to engage in an IMF programme with a duration of at least three years, Finance Minister Muhammad Aurangzeb stated on Friday, expressing optimism that the growth rate would improve in the next financial year.
In an interview with Bloomberg, the minister said the matter of an Extended Fund Facility (EFF) with the International Monetary Fund would be discussed in Washington next month.
"We have expressed our strong interests in an Extended Fund Facility with the IMF, but the quantum is not clear yet," Aurangzeb said, adding that the US had also been "very supportive" in the matter.
Aurangzeb emphasised that the government's strong cash balances enable timely debt payments, indicating that the country is moving towards economic stability.
He also expressed confidence that these payments would not exert pressure on the currency, expressing his hope that the Pakistani rupee would remain stable.
Pakistan and the IMF reached a staff-level agreement regarding the disbursal of the final tranche of $1.1bn earlier this week. The standby $3 billion arrangement with the global lender expires on April 11.
The finance minister announced that Pakistan will issue Panda Bonds worth $300 million this year to tap into the Chinese market.
The minister highlighted that China is the world's second-largest bond market, and Chinese investors could benefit from investing in these bonds.
Initially, bonds worth $250 million to $300 million will be issued, with the possibility of increasing the volume of bonds at a later stage.