Negotiations between Pakistan and the International Monetary Fund (IMF) on the $7 billion loan program continued for the second consecutive day on Tuesday. The IMF delegation, currently in Islamabad, met with Finance Minister Muhammad Aurangzeb. Senior officials, including the finance secretary and the chairman of the Federal Board of Revenue (FBR), were also present.
During the meeting, the finance minister briefed the IMF representatives on Pakistan’s economic situation. He provided insights into the government’s reform agenda aimed at stabilizing the economy.
A day earlier, Khyber News TV reported that Pakistan’s Finance and Planning Ministry officials had initiated discussions with the IMF. The talks primarily revolved around economic policies and climate-related projects.
As part of the discussions, the Pakistani team submitted a Green Initiative Report to the IMF. This report highlighted key climate projects spearheaded by the Ministry of Planning. According to sources, the Ministry of Finance prepared the report in response to the IMF’s newly introduced requirements. Officials from the Planning Commission confirmed these requirements.
The dialogue also addressed Pakistan’s Public Sector Development Programme (PSDP). The IMF delegation reviewed Pakistan’s spending strategies and potential budget revisions for the ongoing fiscal year. Ministry officials presented an initial briefing, outlining economic performance and expenditure plans.
A nine-member IMF team, led by Nathan Porter, arrived in Islamabad to conduct the first review of Pakistan’s $7 billion financial aid program. Sources from the finance ministry revealed that the negotiations would take place in two phases. The first phase would involve technical discussions, followed by high-level policy negotiations.
The IMF officials will also engage with Pakistan’s key financial and economic institutions. These include the Ministry of Finance, the FBR, the State Bank of Pakistan (SBP), and the Power Division. Additionally, the IMF team will hold meetings with the Ministry of Energy, the Ministry of Planning, the Oil and Gas Regulatory Authority (OGRA), and the National Electric Power Regulatory Authority (NEPRA).
Pakistan is set to present a compliance report on the $7 billion IMF bailout package. This report will cover Pakistan’s adherence to loan conditions for the first half of the ongoing fiscal year. The IMF delegation will also assess Pakistan’s economic standing and provide recommendations for the next fiscal budget.
The IMF mission will remain in Pakistan for two weeks. The discussions are scheduled to conclude on March 15.
