Pakistan working to receive $2.6b stalled IMF funds, says Dar

Finance Minister Ishaq Dar revealed that the government was  actively working on a mechanism to receive the stalled funds amounting to $2.6 billion from the International Monetary Fund (IMF).

 Ishaq Dar expressed optimism, stating that the nation could expect "good news" regarding the delayed bailout package within the next one or two days.

He gave these remarks while talking to a local private news organization on Tuesday.

Efforts have been underway in Islamabad to finalize a deal with the IMF after implementing policy and fiscal tightening measures required by the Washington-based lender. The disbursal of $1.1 billion, part of the IMF's ninth review of the $6.5 billion Extended Fund Facility agreed upon in 2019, has been pending.

Earlier, Nathan Porter, the International Monetary Fund's (IMF) Mission Chief to Pakistan, announced 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.

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.

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.