Key Takeaways
- Pakistan and IMF nearing final stage of negotiations for $1.2 billion in funding.
- Agreement expected to unlock funds under two ongoing programs.
- Reviews to be submitted to IMF Executive Board for approval.
Pakistan and the International Monetary Fund (IMF) are close to finalizing a staff-level agreement that could unlock approximately $1.2 billion in funding, according to sources in the Ministry of Finance.
The negotiations, scheduled to conclude on October 7, are part of Pakistan’s fourth review under the $7 billion Extended Fund Facility (EFF) and the third review under the $1.4 billion Resilience and Sustainability Facility (RSF).
Successful completion of both reviews would allow Pakistan to receive the fifth installment under the EFF program and the next disbursement under the climate financing facility.
So far, Pakistan has received around $4.6 billion from the IMF under these two programs, the sources noted.
The outcome of the negotiations will determine the timing of the next disbursements and the submission of the reviews to the IMF Executive Board.
If the talks conclude successfully, the two sides are expected to reach a Staff-Level Agreement (SLA), after which the reviews will be submitted for approval.
The IMF may extend negotiations if differences remain over outstanding issues, but sources are optimistic about a successful conclusion.
The outcome will depend on the IMF’s assessment of Pakistan’s economic performance and commitments.
