. The success of the ongoing IMF review will serve as a crucial stepping stone on this path. Not only the county but 240 million people of Pakistan stand at a pivotal juncture; as a team from the International Monetary Fund commences a critical review of the country’s existing loan program, the nation grapples with mounting economic woes. This evaluation will determine the release of a final disbursement under a $3 billion bailout package secured last year to prevent a sovereign debt default.

The opening session was headed by chief of IMF mission Nathan Porter and Finance Minister Pakistan Muhammad Aurangzeb, along with their respective delegations. Muhammad Aurangzeb emphasized the government’s commitment to work in partnership with the international monetary fund on an economic growth, stability and reform agenda. Reportedly discussions centered on key macroeconomic indicators, the government’s fiscal consolidation efforts, structural reforms, the energy sector’s viability, and state owned enterprise governance all crucial aspects for fostering economic health.

Pakistan has already received roughly $1.9 billion from the IMF under the 9 month Stand By Arrangement SBA expiring in April. Coalition government headed by ShehbaSharif, expressed confidence in securing the final $1.1 billion SBA installment. Ministry of finance also claims to have fulfilled all required point of reference, benchmarks and performance criteria for a successful review. Ministry of finance anticipates a staff level agreement following the appraisal, with the remaining funds disbursed upon approval by the executive board of IMF’s.

Yet, minister finance intends to leverage this opportunity to advocate for a longer and larger loan program under the IMF’s Extended Fund Facility (EFF) during the review meetings. The size of this additional funding requirement remains undisclosed. The EFF offers financial assistance to nations facing severe medium term balance of payments issues stemming from structural weaknesses demanding sustained rectification efforts. Muhammad Aurangzeb expressed that the government’s strong desire to initiate discussions on the EFF with the IMF. He further revealed plans to travel to Washington next month for continued discussions during the spring meetings of the IMF and World Bank.

In spite of having secured over 20 IMF loan programs, Pakistan’s debt ridden economy continues to struggle. A persistent lack of critical reforms has resulted in declining foreign exchange reserves, a pending balance of payments crisis, ever-increasing and mounting inflation, record devaluation of the PKR, and persistent political instability. IMF review presents a critical opportunity. Pakistan must have to prove a firm commitment to all-inclusive economic reforms. These reforms should encompass fiscal consolidation measures to curb wasteful spending, structural reforms to enhance the efficiency and competitiveness of key sectors like energy, and improved governance within state owned enterprises to combat corruption and ensure optimal resource utilization.

These challenging days demands political stability, and political stability in Pakistan is in the same way critical as economy. Our leadership must needs to prioritize national interests over prejudiced agendas and work collaboratively to create favorable environs for economic growth and development. Addressing the allegations surrounding the recent elections and fostering a more transparent and inclusive political process will be vital to regaining investor confidence and attracting much needed foreign investment.

Financial steward, Muhammad Aurangzeb, has outlined a bold vision for the nation’s economic future. His primary objective is to secure a fresh EFF from the International IMF behind the expiration of the current standby arrangement in April. This lifeline proved crucial in prevention a sovereign default last year. The success of the ongoing review this week hinges on releasing a final tranche of approximately $1.1 billion. Upon finalizing the new Extended Fund Facility, finance minister very timely decided and declared to take another step to approach Middle Eastern banks for commercial borrowing. These banks, which have formerly demonstrated a strong appetite for business with Pakistan, this will become a source of funding and support, particularly for our trade happenings and endeavoring.

Countries like Saudi Arabia and UAE have strong and long history of providing financial assistance and aid to Pakistan. They can bolster State Bank of Pakistan with billions of dollars in deposit. In addition these nations have consistently provide deferred payment options for oil purchases and offered direct financial support to stabilize the economy and bolster foreign exchange reserves. Another immediate priority to the finance minister embroils ensuring macroeconomic stability; need to focus to reduce unnecessary expenditures, and plugging loopholes within the tax system. This coincides with the arrival of an IMF team in Islamabad for the second and final review of $3 billion standby arrangement.

Daunting and formidable set of challenges confronts to the finance minister and newly elected government is to stabilize the economy amidsthiand dwindling foreign reserves. They must have to manage large foreign debt while navigating negotiations with Washington based lenders and it is really a critical task. Pakistan needs fiscal reforms to boost revenue and attract investments, both essential for sustainable economic growth and job creation. The debt laden economy, which contracted by 0.2% last year and is projected to grow by around 2% this year, finds itself under immense pressure. Low reserves, a balance of payments crisis, inflation at 23%, policy interest rates at 22%, and record depreciation of the local currency all paint a concerning picture.

The current SBA requires fulfilling specific IMF conditions, together with budget revisions, increasing interest rates, and raising electricity and gas prices. These measures resulted in record-high inflation, peaking at 38% year on year in May. The clear cut amount of additional funding Pakistan seeks through a successor program remains undisclosed. However, a February report by Bloomberg indicated that Pakistan is targeting a new loan of at least $6 billion. Need to understand that Pakistan stands at a crossroad; vision for a better future based on building sustainable solutions and responsible financial management which will offer a spark of hope. Path towards a more prosperous and stable future will be determined by ability to navigate through these challenges with a renewed sense of purpose and unwavering commitment.