IMF Talks Enter Final Day With Good News Imminent

Discussions will conclude on March 18 between Pakistan and the International Monetary Fund (IMF) for the final review of the $3 billion Standby Arrangement under the lender’s Extended Fund Facility. Prominent sources informed ProPakistani that a staff-level agreement for the final $1.1 billion installment will likely be reached on the concluding day of negotiations. This agreement will pave the way for the approval of the final installment of $1.1 billion by the IMF Executive Board in April. Sources said the Washington-based lender will finalize the draft Memorandum of Economic and Financial Policies (MEFP) soon after Nathon Porter’s team leaves Pakistan tomorrow night. Representatives from both Pakistan and the IMF have been diligently working towards this goal. Besides the final tranche under the ongoing SBA, developments concerning the augmentation of Pakistan’s 3-year Extended Fund Facility from $6 billion to $8 billion will likely be shared after talks conclude tomorrow. Looking ahead, attention shifts to the upcoming Annual Spring Meeting of the Breton Wood Institutions (BWIs), also known as the IMF and World Bank (WB), scheduled for April 15 in Washington. Pakistan is gearing up for a new and larger loan program, signaling its commitment to addressing its economic challenges. To bolster its efforts, Finance Minister Muhammad Aurangzeb and his economic team will visit Washington to attend the meetings. This move underscores Pakistan’s determination to navigate its economic landscape with the support and guidance of international financial institutions.