Pakistan’s negotiations with the International Monetary Fund (IMF) concluded successfully, with the international lender providing the green light for the release of the next $1 billion tranche, sources confirmed.

According to sources within the Ministry of Finance, Pakistan had requested a loan of $2 billion from the IMF, which included the disbursement of the $1 billion tranche and an additional $1 billion in climate financing.

The sources further said that approval for both the loan tranche and climate financing was expected to be granted in a lump sum.

However, the $1 billion allocated for climate financing would be disbursed in instalments.

Also Read: IMF wants higher revenue; Pakistan pledges to cut public spending

Earlier on Thursday, the international lender urged Pakistan to enhance revenue generation and curb expenditures as policy-level discussions between the two sides continue.

The consultations, focused on the ongoing fiscal year’s performance and next year’s economic targets, come amid Pakistan’s push to secure the next tranche of its $7 billion loan programme.

According to sources, IMF officials were briefed on the government’s measures to reduce the burden on the public exchequer, including a proposal to set the tax revenue target above Rs15,000 billion for the next fiscal year.

The tax-to-GDP ratio is projected to increase to 13 percent, while non-tax revenue collection is estimated to reach Rs 2,745 billion.