ISLAMABAD, Feb 25: Pakistan is set to begin discussions with the International Monetary Fund (IMF) on the third review of its ongoing loan programme with the global money lender, following the arrival of its delegation in Karachi, said Finance Minister Muhammad Aurangzeb on Wednesday.
Speaking to reporters in Islamabad, Aurangzeb confirmed that formal talks with the IMF team would commence in the federal capital on Monday. According to Aurangzeb, the third review would focus on assessing the country’s performance under the programme, including fiscal and structural reform benchmarks.
The review is part of Pakistan’s ongoing USD 7bn Extended Fund Facility (EFF), a multi-year arrangement which is aimed at stabilising the economy, strengthening public finances, and addressing long-standing structural weaknesses. A successful completion of the review would reportedly pave the way for the next tranche of financial assistance.
Aurangzeb said Pakistan was in a “good position” regarding tax collection by the Federal Board of Revenue (FBR), adding that revenue performance would feature prominently in the discussions.
Meeting revenue targets has been a key condition under the IMF programme, as Islamabad seeks to narrow its fiscal deficit and improve debt sustainability.
The finance minister also addressed concerns about external financing, saying there were no issues with the rollover of deposits from the UAE, noting that Islamabad remained in regular contact with authorities in Abu Dhabi, whose deposits have been critical in stabilising the country’s dwindling foreign exchange reserves.
Earlier, sources said the IMF delegation held an initial meeting with officials of the State Bank of Pakistan (SBP) shortly after arriving in Karachi. During the session, central bank officials reportedly briefed the team on monetary policy, foreign exchange management and regulatory matters, including measures related to anti-money laundering and counter-terror financing.
According to sources, if the third review under the EFF concludes successfully, Pakistan could also receive around USD 200mn under the IMF’s Resilience and Sustainability Facility (RSF), a programme designed to support climate-related reforms and strengthen economic resilience. (UNI)
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