As Islamabad eyes a bigger and longer bailout package to stabilise and revive its economy, Pakistan and the International Monetary Fund started talks on Monday not on only Extended Fund Facility but also climate financing.
On the other hand, the two sides have agreed on the important targets set for the upcoming budget, sources say, which includes timely repayment of external debt repayments.
The Washington-based world’s top financial institution is represented by a team led by Nathan Porter, the IMF’s Mission Chief to Pakistan, a process that is expected to take two weeks.
In this connection, Finance Minister Muhammad Aurangzeb and other economic team members briefed the IMF mission on current state of affairs, including the previous terms and meeting the terms and conditions set by the lender previously.
Meanwhile, the IMF has agreed to the suggestion concerning extending targeted subsidies to the low-income groups which are worst affected by inflation, sources claimed.
During the briefing, Porter stressed the need for implementing the IMF recommendations and noted that political instability produced the challenges faced on the economic front in Pakistan.
He called for all political parties working together for economic revival and promised to continue assisting Pakistan while assuring the Pakistani side of fixing the EFF size and duration in consultation with the IMF Executive Board.
However, the final approval of the IMF programme, in case of successful talks, is expected later in late June or early July.
The sources say Pakistan has completed its homework on EFF and drafted a working paper, as the government is hoping an IMF programme worth $6 billion to $8 billion for a period of three to four years.
In this connection, IMF Resident Representative for Pakistan Esther Perez Ruiz said the IMF team would meet authorities to discuss the next phase of engagement, with an aim to lay the foundation for better governance and stronger, more inclusive, and resilient economic growth that will benefit all Pakistanis.
