Pakistan Likely to Receive $1.2 Billion IMF Tranche as Government Begins Preparations
ISLAMABAD: Pakistan is expected to receive a $1.2 billion tranche from the International Monetary Fund (IMF), with the government beginning preparations for the upcoming economic review scheduled for September.
According to sources, an IMF delegation will visit Pakistan next month to hold negotiations with the country’s economic team for the next review under the $7 billion Extended Fund Facility (EFF) programme.
The Ministry of Finance has directed all relevant ministries and divisions to prepare for the review and ensure compliance with the agreed conditions and structural benchmarks under the IMF programme.
Sources said the negotiations will cover progress under the EFF programme as well as the Resilience and Sustainability Facility (RSF) related to climate change.
The economic team will brief the IMF mission on progress in implementing the new budget and structural reform targets. Discussions will also focus on measures to control circular debt in the electricity and gas sectors, progress on the privatisation programme, growth in foreign exchange reserves, the policy rate and inflationary pressures.
According to sources, Pakistan is likely to receive $1 billion under the fifth tranche of the $7 billion EFF programme, while another $200 million is expected under the IMF’s climate-related RSF programme.
Pakistan has so far received around $4.8 billion under the two programmes, while it is expected to receive more than $3 billion during the period up to September next year.
Ministry of Finance sources said the IMF programme remains on track. Most of the structural benchmarks and prior actions agreed with the IMF have already been achieved, while work on some remaining targets is ongoing.
The government’s economic team is confident that all outstanding conditions will be fulfilled before the review negotiations. Officials are hopeful that the next IMF review will also be completed successfully, paving the way for the release of the $1.2 billion tranche and supporting Pakistan’s efforts to successfully complete the programme.
