Pakistan and the International Monetary Fund (IMF) have entered the final stage of negotiations, with a staff-level agreement expected to unlock around $1.2 billion in funding under two ongoing programs, sources in the Ministry of Finance told ProPakistani.
The talks are scheduled to conclude on October 7 (today). However, IMF may extend negotiations if differences remain over outstanding issues.
According to the sources, chances for a successful conclusion were bright, but the outcome would depend on the IMF’s assessment of Pakistan’s economic performance and commitments.
If the talks conclude successfully, the two sides are expected to reach a Staff-Level Agreement (SLA). The reviews will then be submitted to the IMF Executive Board for approval. The next installments will be released after the board approves the reviews, according to the sources.
The negotiations cover Pakistan’s fourth review under the $7 billion Extended Fund Facility (EFF) and third review under the $1.4 billion Resilience and Sustainability Facility (RSF), which provides climate-related financing.
Successful completion of both reviews would allow Pakistan to receive around $1.2 billion. This includes the fifth installment under the EFF program and the next disbursement under the climate financing facility.
Pakistan has so far received around $4.6 billion from the IMF under the two programs, the sources said. The outcome of the negotiations will determine the timing of the next disbursements and the submission of the reviews to the IMF Executive Board.
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