ISLAMABAD: The International Monetary Fund (IMF) mission will begin bailout talks with Pakistan next week.

In a statement, Esther Perez Ruiz, the representative of the International Monetary Fund (IMF), said that an IMF mission led by Nathan Porter will hold talks with Pakistani authorities next week.

The mission will discuss the next loan program with Pakistan, aiming to establish a stronger and more stable governance framework.

According to Ruiz, the talks will focus on laying the foundations for sustainable and inclusive economic growth, which will benefit all Pakistanis.

The technical experts’ team of the International Monetary Fund (IMF) landed in Pakistan for talks on a fresh loan programme and budget preparations on May 10.

Pakistan faces significant economic challenges ahead of the new talks, including a failed tax amnesty scheme proposed by the IMF.

The federal government had promised to bring 3.1 million traders into the tax net under the scheme, but it has been unsuccessful. The Federal Board of Revenue (FBR) is facing an unusual situation after the recent changes in senior officials.

The development comes a day after Pakistan received the much-awaited $1.1 billion final tranche from IMF as part of the $3 billion standby arrangement.

The SBP said it received Special Drawing Rights (SDR) 828 million — equivalent to $1.1 billion in value — “following the successful completion of the second review by the Executive Board of IMF under Stand By Arrangement (SBA)”.

Pakistan is seeking a new long-term and larger IMF loan, with Finance Minister Muhammad Aurangzeb saying Islamabad could secure a staff-level agreement on the new program by early July.

Islamabad says it is seeking a loan over at least three years to help macroeconomic stability and execute a long-due and painful structural reforms, though Aurangzeb has declined to detail what seize of programme the country seeks. If secured, it would be the 24th IMF bailout for Pakistan.