ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have agreed to begin talks from Nov 2 for the release of the $710 million second loan tranche, ARY News reported on Wednesday quoting sources.
Sources privy to the development told ARY News that the first review talks will be held for the second loan tranche of $710 million and a staff-level agreement would pave the way for its approval by the IMF board in December.
An International Monetary Fund mission will visit Pakistan on Nov 2 to discuss the first review of the current three billion dollars Standby Arrangement (SBA), the lender’s resident representative said.
The Standby Arrangement was approved in July and Pakistan received one point two billion dollars as the first tranche that potentially saved the country from the default.
IMF had released the first tranche of $1.2 billion in July this year.
The meeting will discuss reforms in power sector, circular debt reduction plan, gas prices and tax reforms, sources say.
The federal government and the State Bank of Pakistan remain hopeful that they will comfortably complete the review on back of meeting the conditions agreed with the IMF in July.
It is pertinent to mention here that the Economic Coordination Committee (ECC) of the Cabinet this Monday approved various summaries including revision of natural gas pricing, immediate import of 200,000 MT of urea fertilizer and 1.00MMT of milling wheat for fiscal year 2023-24.
The Caretaker Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar presided over the meeting, according to press statement issued by the finance ministry.
The Ministry of Industries and Production had submitted a summary regarding the measures to meet the requirements of urea for Rabi season 2023-24. The ECC discussed the proposal in detail and approved immediate import of 200,000 MT of Urea fertilizers.
The development came after the International Monetary Fund (IMF) had repeatedly asked Pakistan to ‘immediately raise’ gas tariff.
The IMF sought 100pc ‘rise’ in the gas tariff to minimize the losses and circular debt in Pakistan’s gas sector.
An IMF team led by Nathan Porter will field a mission to Pakistan starting on Nov 2 on the first review under the current Stand-By Arrangement (SBA) of $3 billion.
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