Talks between IMF and SBP kicked off in Karachi
As per schedule, technical-level talks begin first, followed by policy-level discussions next week: Successful talks could unlock next instalments under both IMF programmes
The International Monetary Fund (IMF) review mission started negotiations with the State Bank of Pakistan (SBP) on Wednesday for the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF), with a focus on inflation, monetary policy, and the exchange rate, reported 24NewsHD TV channel.
The mission will remain in Karachi this week for discussions with the central bank before arriving in Islamabad on September 28 for negotiations with the Ministry of Finance, Federal Board of Revenue (FBR) and other ministries.
The Islamabad leg of the talks is expected to go ahead, provided the situation in the federal capital remains normal.
The IMF delegation will hold talks with officials of the State Bank of Pakistan in Karachi. The first phase of the discussions will take place at the technical level, while policy-level talks with the Fund are expected to begin next week.
The negotiations are expected to continue for about two weeks. Talks on the Extended Fund Facility and the Climate Financing programme will be held at the same time, sources said.
The discussions will include a review of Pakistan’s performance during the second half of the previous financial year. If the talks are successfully completed, the next instalments under both programmes will be released, according to sources.
The talks will cover the fourth review of the Extended Fund Facility programme and the third review of the Climate Financing programme. Successful completion of the review would pave the way for Pakistan to receive the fifth instalment under the Extended Fund Facility.
Pakistan would also receive the next tranche of funding under the Climate Financing programme, sources said.
Pakistan has so far received $4.6 billion from the IMF under the two programmes. The country is currently participating in two IMF lending programmes at the same time.
Pakistan is under an Extended Fund Facility programme worth more than $7 billion and is also participating in a $1.4 billion Climate Financing programme.
Reporters: Waqas Azeem and Rozina Ali