Pakistan’s negotiations with the International Monetary Fund (IMF) have reached their final and decisive phase today, with both sides expressing optimism over the successful completion of the $7 billion loan programme’s second review, 24NewsHD TV channel reported on Wednesday.
According to sources in the Ministry of Finance, the talks, which also cover the first review under the Climate Financing Programme, have so far proceeded in a constructive and positive manner.
Finance ministry officials said the chances of success are “bright”, provided that the IMF is fully satisfied with Pakistan’s reform progress.
Sources added that Pakistan has fulfilled most of the Fund’s structural benchmarks and policy conditions, and a staff-level agreement is expected if consensus is achieved by the end of discussions. If not, the IMF mission may decide to extend the talks.
Yesterday, Pakistan and the IMF reviewed key macroeconomic indicators, with Islamabad briefing the Fund on updated fiscal, inflation, and growth projections.
The government proposed a revised GDP growth target of under 4.2 percent, citing the impact of recent floods and economic adjustments.
According to official data shared during the meetings, Pakistan’s economic growth is likely to stay around 3.5 percent, while inflation may exceed 8 percent, slightly above the official target of 7.5 percent.
The government expects workers’ remittances to reach $42 billion, up from an earlier estimate of $39.4 billion, although the IMF’s forecast remains lower at $35.7 billion.
Pakistan also anticipates its foreign exchange reserves to rise to $14.5 billion, with the current account deficit narrowing to $500 million, significantly below the earlier projection of $2.1 billion.
In contrast, the IMF estimates a deficit of around $1.49 billion and exports below $33 billion.
Reporter: Waqas Azeem