An International Monetary Fund (IMF) delegation is scheduled to visit Pakistan next month for negotiations aimed at securing the next disbursements under the country’s ongoing loan programmes.
The talks will focus on the next tranche of the $7 billion Extended Fund Facility (EFF), while progress under the Resilience and Sustainability Facility (RSF), linked to climate change, will also be reviewed.
Relevant ministries have been instructed to prepare for the upcoming negotiations with the IMF and provide a detailed update on the implementation of the new federal budget.
Pakistan will also brief the IMF mission on progress toward its structural reform targets, as the government seeks to demonstrate compliance with commitments under the current programmes.
Privatisation and energy reforms on agenda
The IMF delegation will be briefed on progress in Pakistan’s privatisation programme, along with details of reforms being implemented in the energy sector.
The government is also expected to present measures aimed at preventing the accumulation of circular debt in the power and gas sectors, a longstanding challenge for Pakistan’s economy.
Economic indicators to be reviewed
Pakistan will also share updates on key economic indicators, including the impact of the increase in foreign exchange reserves, the policy interest rate and inflation.
The review of these indicators will form part of the broader assessment of Pakistan’s economic performance and progress under the IMF programmes.
Pakistan expects $1.2bn in fresh financing
Pakistan is likely to receive around $1 billion under the fifth tranche of the current IMF loan programme.
The country is also expected to receive another $200 million under the RSF to support measures related to climate change, bringing the anticipated fresh financing to approximately $1.2 billion.
Pakistan has so far received around $4.8 billion under the IMF programmes, according to the report.
The country is expected to receive more than $3 billion by September next year, subject to the completion of programme reviews and fulfilment of the agreed conditions.
The upcoming IMF mission will therefore be closely watched as Pakistan seeks to secure further financial support while demonstrating progress on fiscal, structural, energy and climate-related reforms.
