Pakistan will begin talks with the International Monetary Fund for the second review of the stand-by agreement in the ongoing week, according to newly-appointed Finance Minister Muhammad Aurangzeb.

Aurangzeb, CEO of one of the largest banks in Pakistan, was sworn in as finance minister on Monday. He formally took charge later in the day.

The minister also added that 2024 would be a ‘difficult’ year for Pakistan’s economy.

A successful second review would unlock the final tranche of the SBA, worth $1.1 billion.

However, speculation has been afoot that Paksitan’s talks with the IMF could extend to more than just the final review of the SBA and Islamabad could look to secure a new medium-term bailout.

The Fund has already expressed its optimisim about negotiating with a new government in the country.

“We look forward to engaging with the new government to complete the second review under the current stand-by arrangement and, should the government request, support the formulation of a new medium-term economic program,” IMF spokesperson Julie Kozack said recently.

She added that during the tenure of the interim government, the authorities had “maintained economic stability”.

“This has been done through strict adherence to fiscal targets while also protecting the social safety net. It has been done by maintaining a tight monetary policy stance to control inflation and to continue to build up foreign exchange reserves,” she said.

“We look forward to working with the new government on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens. And I am going to leave it at that,” she said.