Pakistan ‘to seek $6bn in new IMF programme’

ISLAMABAD: Pakis­tan plans to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to help the incoming government repay billions in debt due this year, Bloomberg News reported on Thursday, citing a Pakistani official. The country will seek to negotiate an Extended Fund Facility with the IMF, the report said, adding that the talks with the global lender were expe­cted to start in March or April. Although a default was averted last summer thanks to a short-term IMF bailout, but the programme expires in April and a new government will have to negotiate a long-term arrangement to keep the economy stable. The country had to undertake a slew of measures demanded by the IMF, including revising its budget, a hike in its benchmark interest rate, and increases in electricity and natural gas prices.