International Monetary Fund (IMF) logo seen outside headquarters building in Washington, USA
Pakistan and the IMF signed a 6 billion agreement in July 2019, but the program derailed in January 2020 and was briefly resumed in March this year before getting back on track in June.
Lacking cash to revive the 6 6 billion loan package, Pakistan will resume talks with the International Monetary Fund (IMF) next week, according to media reports October 3.
According to The Express Tribune, a five-day round of technical discussions will begin on October 4, with an IMF team from Doha, Qatar.
The successful conclusion of the talks will help the IMF to pay $ 1 billion immediately.
Pakistan will resume talks with IMF
Pakistan and the IMF signed a $ 6 billion agreement in July 2019, but the program derailed in January 2020 and was briefly resumed in March this year before getting back on track in June.
From June to August, there were no serious talks between the two sides.
Sources said that Finance Minister Shaukat Tareen was keen to discuss the positive note during face-to-face meetings with the top management of the IMF in Washington on October 15.
The IMF has not yet indicated its readiness for face-to-face meetings and has instead proposed virtual meetings for October 13-15. Sources.
Policy-level talks are coinciding with the annual IMF-WB meetings, which take place from 11 to 17 October.
The Pakistani embassy in Washington and the State Bank of Pakistan (SBP) governor are trying to get dates for a physical meeting with the top management of the IMF.
The Treasury Department did not answer the question of whether the October 13-15 period would be held in Washington.
The ministry did not respond to another question regarding Pakistan’s request for a meeting with the IMF managing director.
Finance Minister Tareen has already announced that he will travel to Washington from October 12 to 17 to hold talks with the IMF’s top management on the sidelines of the annual meetings.
Sources said that during the recent talks, the Finance Ministry showed some leniency in accepting the IMF’s demands, as the four-month stalemate in the talks was proving costly for the government, which is heavily dependent on foreign loans. ۔ During the talks, the two sides will try to find a middle ground on the controversial issue of rising electricity prices.
During recent talks, the IMF said that Pakistan would have to raise electricity tariffs, as staff could not deviate from their position before the administration and the IMF board.
Another important question that will be decided in the next two weeks is whether Pakistan wants to get out of the IMF program on its original schedule of September 2022 or extend it to get the remaining ارب 4 billion loan. Required.
According to the report, the government wants the IMF to move forward with the distribution calendar and increase the size of loan installments.
Pakistan has a budget of 400 400 billion or 1 3.1 billion from the IMF for the current financial year and its repayment is possible only after the completion of the remaining assessments. Estimating Pakistan’s overall financing needs was another important sector in which the current account deficit increased by 373% during July-August this year as compared to the same period last year.
The IMF wants to see tougher fiscal and fiscal policies adopted by Pakistan to increase public debt and reverse the stability of the external sector.