Pakistan expects to finish its first $7 billion loan arrangement with the IMF

Officials and diplomats quoted by Bloomberg indicate Pakistan is anticipated to effectively finish the first review of its $7billion loan programme with the International Monetary Fund (IMF).

The nation has apparently achieved notable progress in increasing income, which is a fundamental requirement for the loan programme.

Islamabad obtained the $7 billion Extended Fund Facility (EFF) last summer in order to assist in the continuous economic crisis management. With the government expressing hope that Pakistan’s economy is on route for long-term recovery, this program has been important in steadying it.

Reports claim that the government has approved a bill taxing agricultural revenue, tried to sell a share in the state-owned Pakistan International Airlines, and carried out actions to fulfil a high tax target.
The IMF has been presented these acts as part of the continuous negotiations; the officials engaged asked anonymity since the meetings are private.

Currently in Islamabad, an IMF group headed by Mission Chief to Pakistan Nathan Porter is engaging with government officials to evaluate advancement in fulfilling loan agreement requirements.

Should the first review be approved by the IMF, Pakistan stands to get over $1 billion as the second loan tranche. Investors are eagerly observing the review as a main gauge of Pakistan’s development in applying economic reforms.

Once stability is attained, Prime Minister Shehbaz Sharif recently informed IMF Managing Director Kristalina Georgieva that his government intends to present a comprehensive strategy for significantly increasing economic development. Noting Pakistan’s attempts to satisfy loan criteria, the IMF chief expressed support for the country’s reform dedication.

Confident as well, Finance Minister Muhammad Aurangzeb said Pakistan is “well positioned” for the first assessment of the $7 billion credit program. He said that negotiations with the IMF would begin with technical ones and would then proceed to policy-level ones.