IMF in talks with Pakistan for financial support, says mission chief

Islamabad: Nathan Porter, the International Monetary Fund's (IMF) Mission Chief to Pakistan, announced on Tuesday that negotiations were in progress to reach an agreement regarding financial assistance from the global lender.

Porter commended Pakistani authorities for taking decisive measures to align policies with the economic reform program. The statement by Porter comes as Pakistan engages in discussions with the IMF to conclude the ninth review of the $6.5 billion Extended Fund Facility, agreed upon in 2019, and secure the release of a $1.2 billion tranche.

The review process has faced delays since October, but the government is optimistic about its completion soon, with Prime Minister Shehbaz Sharif engaging in multiple discussions with the IMF chief in recent days.

Porter highlighted that Pakistan has implemented various measures, including the passage of a budget by parliament to expand the tax base and allocate more funds for social and development spending. Additionally, steps have been taken to enhance the functioning of the foreign exchange market and tighten monetary policy to address inflationary and balance-of-payment pressures.

"The IMF team continues to hold discussions with Pakistani authorities, aiming to swiftly reach an agreement on financial support from the IMF," Porter added.

Earlier, Prime Minister Shehbaz Sharif once again reached out to the IMF Managing Director, Kristalina Georgieva, expressing hope that a decision regarding the stalled bailout package would be reached within a day or two.

This recent conversation followed three meetings between the prime minister and the IMF chief in Paris last week, along with the National Assembly's recent approval of the revised budget for the year 2023-24.

"The IMF director general acknowledged the efforts of the finance minister and his team for the program's completion during the meetings in Paris," stated a release from the Prime Minister's Office.

While expressing optimism for the prompt release of the delayed loan, the prime minister reiterated his commitment to achieving economic improvement through collaborative endeavors.