IMF mission opens Islamabad phase of Pakistan review talks, with $1.2bn on the line
Formal negotiations for the fourth review of Pakistan's $7bn IMF programme and the third climate resilience review begin in Islamabad today; a successful review could unlock about $1.2bn.
ISLAMABAD: Formal negotiations between Pakistan and a visiting International Monetary Fund staff mission are expected to begin in Islamabad on Monday, as the lender opens the fourth review of the country’s $7 billion Extended Fund Facility and the third review of its climate Resilience and Sustainability Facility — reviews that could unlock roughly $1.2 billion in financing, Dawn reported.
The mission, led by Iva Petrova, is expected to stay for almost two weeks, until the first week of October, to conduct the reviews, according to the report.
The mission opened the technical phase of its visit in Karachi last week; the Islamabad leg will cover the macroeconomic and fiscal framework at a time of pressure on the government to cut the petroleum levy, alongside the impact of the Gulf war on fuel costs and inflation, The News and Express Tribune reported.
A successful review could make about $1 billion available under the 37-month Extended Fund Facility and some $200 million under the climate resilience facility, though any disbursement would require a staff-level agreement followed by approval from the IMF’s Executive Board, Arab News reported.
The lender is simultaneously conducting its Article IV consultation — its regular health check of Pakistan’s economy — alongside the two reviews.
Pakistan has already received about $4.8 billion under the two arrangements, according to Business Recorder.
Sources
- Dawn: “IMF talks to unlock next $1.2bn set to begin today” — https://www.dawn.com/news/2033147/imf-talks-to-unlock-next-12bn-set-to-begin-today
- Arab News: “IMF in Pakistan for loan, climate reviews that could unlock $1.2 billion” — https://www.arabnews.pk/pakistan/imf-in-pakistan-for-loan-climate-reviews-that-could-unlock-12-billion-3002089
- The News: “Pakistan, IMF begin talks on fourth EFF review” — https://www.thenews.pk/print/1439137-pakistan-imf-begin-talks-on-fourth-eff-review
- Express Tribune: “IMF talks begin with reform gaps” — https://tribune.com.pk/story/2631068/imf-talks-begin-with-reform-gaps
- Business Recorder: “Pakistan, IMF kick-off review talks” — https://www.brecorder.com/news/40440847
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