IMF Talks Near Conclusion, $1.2 Billion Disbursement Expected for Pakistan

ISLAMABAD: Pakistan’s discussions with a visiting staff mission from the International Monetary Fund (IMF) are anticipated to conclude positively this week, setting the stage for the disbursement of approximately $1.2 billion under two concurrent programs—the $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF).

Sources familiar with the negotiations indicate that both parties are finalizing the Memorandum of Economic and Fiscal Policies (MEFP) after addressing the key parameters of the biannual review. The staff mission, led by Ms. Iva Petrova, is expected to wrap up its visit in the coming days, with no new demands from the IMF, aside from adjustments to address past fiscal slippages. The revenue target remains unchanged, with a heightened focus on meeting the half-yearly target following a robust collection in the first quarter that exceeded expectations.

This development comes at a critical time as Pakistani authorities are also working to finalize the liquefied natural gas (LNG) import plan for the upcoming winter months, which is essential for energy security. The successful conclusion of the IMF talks could bolster investor confidence and stabilize the economy, which has been grappling with various challenges.

Looking ahead, the completion of the MEFP will pave the way for the disbursement, with further meetings expected to ensure compliance with the agreed fiscal policies. The outcome of these discussions will be closely monitored by both local and international stakeholders.