Negotiations between Pakistan and the International Monetary Fund (IMF) for the release of a $1 billion loan tranche have  officially begun. A nine-member IMF review mission, led by Nathan Porter, arrived in Islamabad on Monday for the first economic review of Pakistan’s $7 billion bailout package.  According to the well-placed sources in the ministry, the talks will proceed in two phases: first, technical discussions, followed by policy-level negotiations. 

Sources said Finance Minister Muhammad Aurangzeb will lead Pakistan’s delegation in policy-level talks, while IMF officials will engage with key institutions, including the Ministry of Finance, the Federal Board of Revenue (FBR), the Power Division, and the State Bank of Pakistan (SBP).  The sources further said that the IMF team will also hold discussions with the Ministry of Energy, Ministry of Planning, OGRA, and NEPRA.  Pakistan is expected to present a compliance report on the conditions of the $7 billion bailout program, covering the first half of the current fiscal year. 

The delegation will also assess Pakistan’s economic performance and make recommendations for the next fiscal year’s budget.  The IMF mission will stay for two weeks, with talks concluding on March 15.  With economic uncertainty looming, these discussions are critical for securing the next loan installment and ensuring Pakistan’s adherence to IMF conditions.

Credit: Independent News Pakistan (INP)