An IMF delegation is expected to arrive in Pakistan on Wednesday to conduct the final review of a $3 billion standby arrangement, according to sources within the finance ministry. The four-day review is set to begin on Thursday, with Islamabad seeking the disbursement of approximately $1.1 billion upon successful completion.

Prime Minister Shehbaz Sharif has instructed his finance team, led by newly appointed Finance Minister Muhammad Aurangzeb, to prepare for seeking an Extended Fund Facility (EFF) once the standby arrangement concludes on April 11. Aurangzeb confirmed the IMF team’s imminent arrival this week but did not specify the exact date.

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The IMF has signaled its willingness to develop a medium-term program if Pakistan submits an application. Aurangzeb expressed Pakistan’s interest in discussing another EFF during the upcoming talks and suggested that negotiations on a larger, longer-term program would occur during the IMF and World Bank’s spring meetings in April in Washington.

During the review process, Aurangzeb aims to initiate discussions and evaluate the IMF’s response. His appointment comes amid the challenge of stabilizing an economy plagued by recurring boom-bust cycles, which have led to over 20 IMF bailout programs in the past.

Pakistan’s debt-laden economy faced a contraction of -0.2 percent last year and is forecasted to grow by approximately 2 percent this year. It is grappling with low reserves, a balance of payments crisis, soaring inflation at 23 percent, policy interest rates at 22 percent, and unprecedented depreciation of the local currency.