ISLAMABAD: Pakistan resumed crucial talks with IMF in Islamabad Tuesday on the cash-starved country’s economic and fiscal policies as well as much-needed reforms that the global moneylender has been seeking to disburse the next tranche of its bailout package.
Pakistan is requesting a crucial instalment of $1.2 billion from IMF—part of its $7 billion bailout—to avoid default. Talks with IMF on reviving the package had stalled in the past months.
Finance minister Ishaq Dar briefed the fund’s delegation, led by its chief Nathan Porter, about the government’s fiscal and economic reforms in several sectors, including energy, and measures to bridge the fiscal gap and stabilise the exchange rate.
The finance minister, an official handout stated, assured IMF officials that Pakistan would complete the ongoing programme. “Ishaq Dar extended all his support to the mission and committed to working together to reach an agreement to complete the ninth review under the Extended Fund Facility (EFF),” the statement read.
Pakistan had entered a $6bn IMF programme in 2019, which was later expanded to $7bn, and the ninth review is pending. Talks were originally scheduled to be held in October, but kept facing delays due to Islamabad’s reluctance to implement the lender’s conditions.
The country’s foreign exchange reserves currently stand at $3.7bn, which is barely enough to cover less than three weeks of imports. In such a situation, Pakistan needs to urgently complete the ninth review, which would not only disburse $1.2bn but also pave the way for cash inflows from other multilateral lenders and friendly countries, like China, Saudi Arabia and UAE.
Last week, the government removed an unofficial cap on the US$-Pakistani rupee exchange rate and raised petrol prices—both conditions set by IMF for talks.
The technical discussion would continue till February 3, while the second phase of policy negotiations would continue till February 9 to finalise a memorandum of economic and financial policies.
Pakistan is requesting a crucial instalment of $1.2 billion from IMF—part of its $7 billion bailout—to avoid default. Talks with IMF on reviving the package had stalled in the past months.
Finance minister Ishaq Dar briefed the fund’s delegation, led by its chief Nathan Porter, about the government’s fiscal and economic reforms in several sectors, including energy, and measures to bridge the fiscal gap and stabilise the exchange rate.
The finance minister, an official handout stated, assured IMF officials that Pakistan would complete the ongoing programme. “Ishaq Dar extended all his support to the mission and committed to working together to reach an agreement to complete the ninth review under the Extended Fund Facility (EFF),” the statement read.
Pakistan had entered a $6bn IMF programme in 2019, which was later expanded to $7bn, and the ninth review is pending. Talks were originally scheduled to be held in October, but kept facing delays due to Islamabad’s reluctance to implement the lender’s conditions.
The country’s foreign exchange reserves currently stand at $3.7bn, which is barely enough to cover less than three weeks of imports. In such a situation, Pakistan needs to urgently complete the ninth review, which would not only disburse $1.2bn but also pave the way for cash inflows from other multilateral lenders and friendly countries, like China, Saudi Arabia and UAE.
Last week, the government removed an unofficial cap on the US$-Pakistani rupee exchange rate and raised petrol prices—both conditions set by IMF for talks.
The technical discussion would continue till February 3, while the second phase of policy negotiations would continue till February 9 to finalise a memorandum of economic and financial policies.