Fund’s team was in Pakistan on May 13 through 23 to discuss the next phase of engagements         This file photo taken on January 26, 2022, shows the seal for the International Monetary Fund (IMF) in Washington, DC. — AFP

WASHINGTON: The International Monetary Fund will back a “homegrown” programme of Pakistan that is seeking a new and larger loan.

“We made significant progress toward reaching a staff level agreement on a homegrown program that can be supported under a new EFF with the Fund,” Julie Kozack, IMF’s director communication, said responding to a question by The News.

The Fund’s team was in Pakistan on May 13 through 23 to discuss the next phase of engagements with the authorities for a new support program. “Those discussions are continuing virtually,” Kozack said during the press briefing here yesterday.

Last month, the IMF had noted that since its mission team was in Pakistan working on the negotiations, their “findings will be communicated in due course.”

In April, Pakistan completed its short-term SbA $3 billion program when the IMF Executive Board allowed the disbursement of about 1.1 billion dollars. “The completion of our Board of the second and final review of the SbA reflected the authority’s strong policy efforts during the time of the standby, which did help stabilization of the economy,” the IMF official had said.

Pakistan then requested for a larger, long-term loan to help stabilize economic and financial situation and provide room to carryout significant reforms in key areas. Pakistan also plans to privatize certain entities in that time.