Talks between Pakistan and the International Monetary Fund (IMF) for the $7 billion loan programme continued on the second consecutive day on Tuesday, reported 24NewsHD TV channel.
The Fund’s delegation, presently on a tour to Pakistan, met with Finance Minister Muhammad Aurangzeb in Islamabad. The finance secretary and the FBR chairman were also present at the meeting.
The minister informed the delegation of the country’s present economic situation. He also briefed them about the agenda for economic reforms.
Pakistan ‘well positioned’ for IMF review
Pakistan was “well positioned” for the first review of its $7 billion International Monetary Fund bailout programme as talks with the global lender began on Tuesday, the finance minister told a British news agency.
“They are here. We will have two rounds of talks, first technical and then policy level,” Finance Minister Muhammad Aurangzeb said. “I think we are well positioned” for the review, he said.
Earlier, Pakistani authorities, led by Aurangzeb, formally kicked off talks with the IMF delegation for the first review of a $7 billion bailout program, the Ministry of Finance said in a statement
“Pictures of kick-off meeting held today”, wrote the Finance Division, while sharing two photos with media on WhatsApp but did not provide further details.
The images showed Pakistani officials, led by Finance Minister Muhammad Aurangzeb, involved in discussions with an IMF delegation led by its Pakistan mission chief Nathan Porter.
On Monday, 24News TV channel, while quoting its sources, reported that the officials from Pakistan’s Finance Ministry and Planning Ministry had commenced discussions with the IMF, focusing on economic measures and climate-related initiatives.
During the meeting, the Pakistani delegation submitted a Green Initiative Report to the IMF, outlining key climate change projects spearheaded by the Ministry of Planning.
The preparation of this report was directed by the Ministry of Finance in response to the IMF’s new set of requirements, which were revealed by sources within the Planning Commission.
The discussions also covered Public Sector Development Programme (PSDP) spending and potential budgetary adjustments for the current fiscal year. Ministry officials provided an overview of Pakistan’s economic performance and expenditure strategies in an introductory briefing, sources added.
A nine-member IMF review mission, led by Nathan Porter, had arrived in Islamabad 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 further said that the 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.
Reporter: Waqas Azeem