Federal Government has started homework to initiate talks with International Monetary Fund (IMF) to seek $6 billion dollars bailout package as Finance Ministry was working on the procedure to reach out the international lender, reported 24News HD TV channel.

According to details, newly-elected Prime Minister Shehbaz Sharif has directed Finance Ministry to immediately start the procedure for initiating talks with IMF regarding the Extended Fund Facility (EFF).

PM Shehbaz Sharif gave these directives to Finance Ministry’s officials after chairing a high-level meeting to review the current economic situation in the country.

It is pertinent to mention that Pakistan’s current short-term loan program with IMF will end in April, 2024. The Ministry of Finance sources said in order to meet balance of payments, it was necessary for new government to talk to IMF therefore Finance Ministry was working to prepare schedule for talks with IMF on proposed loan.

Sources claimed this time IMF will provide loan to Pakistan on tough terms and conditions.

Pakistan was facing challenge of new loan for repayments of previous loans. Experts said without increasing exports and downsizing import bills, government of Pakistan will continue to face worst economic situation therefore the federal government needed to take strict measures about it.

Moreover, besides repayments, maintaining of its forex reserves as stable was prerequisite for Pakistan.

In order to counter huge economic challenges, government should make progress on economic reforms and start tighter monetary policy. Expert warned that reforms were needed to reduce current account deficits. The new government also need to take tougher decisions to curb circular debt in power sector.

After seeking briefing on these challenges, PM Shehbaz Sharif directed the concerned authorities to prepare an action plan to improve the economic situation.

PM Shehbaz Sharif said that government will work hard to promote investment in the country and provide facilities to the business community. The prime minister said that state-owned entities that are loss making were burden on the national exchequer which will be privatized on urgent basis.

He also directed to prepare a plan for transition of power and gas sectors to smart metering as this would help in reducing line losses.

The prime minister asked all the banks and financial institutions to prepare strategies for the promotion of small and medium businesses so that the youth of the country can get employment opportunities, thereby helping them to stand on their own feet. The prime minister said that the size of the government will be reduced.

PM Shehbaz said that steps will be taken on an emergency basis to provide facilities to the people. The government will ensure provision of facilities to the business community, investors, and youth.

Reporter: Waqas Azeem