<p>Pakistan and the International Monetary Fund are discussing a $2.5-billion "standby arrangement" for six to nine months, domestic newspapers said on Wednesday, with the current bailout programme set to expire on June 30.</p>.<p>Pakistan rushed through a recent slew of policy adjustments, including a revised budget sought by the IMF and an off-cycle hike in interest rates, hoping to secure the pending funds under the Extended Fund Facility programme (EFF) signed in 2019.</p>.<p>With time running out, Finance Minister Ishaq Dar said on Tuesday the two sides were working on a "mechanism" to ensure that Pakistan got the entire amount and not just the close to $1.1 billion due under the current review.</p>.<p>Dar did not elaborate on what the mechanism was.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/international/world-news-politics/pakistan-lifts-restrictions-on-imports-1230826.html" target="_blank">Pakistan lifts restrictions on imports</a></strong></p>.<p>The ninth review is in order after recent adjustments but Pakistan is keen to receive the entire undisbursed amount, which is only possible in a new programme, the Express Tribune daily said, quoting highly-placed sources.</p>.<p>It said Prime Minister Shehbaz Sharif discussed signing a new stand-by arrangement (SBA) worth $2.6 billion for a short term of six months with IMF Managing Director Kristalina Georgieva.</p>.<p>The IMF's resident representative Esther Perez and Dar did not respond to a Reuters request for comment.</p>.<p>Pakistan's <em>Dawn</em> newspaper also said an SBA was one option discussed to access pending funds after expiry of the EFF.</p>.<p>The south Asian nation is in dire need of external financing and has allocated $2.5 billion in IMF support in its annual budget, which will also be key to unlock other avenues of funding.</p>.<p>On Tuesday, Prime Minister Shehbaz Sharif said he expected an agreement in a day or two, with the lender saying it was holding talks with the aim of "quickly reaching an agreement on financial support from the IMF".</p>.<p>It did not say if the financing was part of the EFF or a new SBA.</p>.<p>Pakistan's international bonds rallied sharply for a third straight session amid rising hopes of IMF funding.</p>.<p>The gains were most pronounced in shorter-dated issues, with the 2024 bond up more than 3 cents in the dollar to trade just above 60 cents - its highest level since early February and up more than 10 cents since the start of the week, Tradeweb data showed.</p>.<p>Longer-dated maturities gained about 1.5 cent.</p>
<p>Pakistan and the International Monetary Fund are discussing a $2.5-billion "standby arrangement" for six to nine months, domestic newspapers said on Wednesday, with the current bailout programme set to expire on June 30.</p>.<p>Pakistan rushed through a recent slew of policy adjustments, including a revised budget sought by the IMF and an off-cycle hike in interest rates, hoping to secure the pending funds under the Extended Fund Facility programme (EFF) signed in 2019.</p>.<p>With time running out, Finance Minister Ishaq Dar said on Tuesday the two sides were working on a "mechanism" to ensure that Pakistan got the entire amount and not just the close to $1.1 billion due under the current review.</p>.<p>Dar did not elaborate on what the mechanism was.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/international/world-news-politics/pakistan-lifts-restrictions-on-imports-1230826.html" target="_blank">Pakistan lifts restrictions on imports</a></strong></p>.<p>The ninth review is in order after recent adjustments but Pakistan is keen to receive the entire undisbursed amount, which is only possible in a new programme, the Express Tribune daily said, quoting highly-placed sources.</p>.<p>It said Prime Minister Shehbaz Sharif discussed signing a new stand-by arrangement (SBA) worth $2.6 billion for a short term of six months with IMF Managing Director Kristalina Georgieva.</p>.<p>The IMF's resident representative Esther Perez and Dar did not respond to a Reuters request for comment.</p>.<p>Pakistan's <em>Dawn</em> newspaper also said an SBA was one option discussed to access pending funds after expiry of the EFF.</p>.<p>The south Asian nation is in dire need of external financing and has allocated $2.5 billion in IMF support in its annual budget, which will also be key to unlock other avenues of funding.</p>.<p>On Tuesday, Prime Minister Shehbaz Sharif said he expected an agreement in a day or two, with the lender saying it was holding talks with the aim of "quickly reaching an agreement on financial support from the IMF".</p>.<p>It did not say if the financing was part of the EFF or a new SBA.</p>.<p>Pakistan's international bonds rallied sharply for a third straight session amid rising hopes of IMF funding.</p>.<p>The gains were most pronounced in shorter-dated issues, with the 2024 bond up more than 3 cents in the dollar to trade just above 60 cents - its highest level since early February and up more than 10 cents since the start of the week, Tradeweb data showed.</p>.<p>Longer-dated maturities gained about 1.5 cent.</p>