Pakistan and IMF talks starting from today; 1.2 billion dollars likely to be received

Pakistan has achieved target of keeping foreign exchange reserves more than 17 billion dollars, further 200 million dollars expected to deal with climate change

Islamabad: Talks between Pakistan and IMF are starting from today, on success of which 1.2 billion dollars are likely to be received.

IMF delegation has arrived in Pakistan for economic review under Extended Fund Facility program, talks for fifth installment of loan program will continue for 2 weeks and in case of success Pakistan is likely to get up to 1.2 billion dollars.

According to Finance Ministry sources, IMF mission will start negotiations with State Bank officials from today. In first phase, technical negotiations will be held with State Bank officials, in which current account deficit, basic interest rate and exchange rate will be discussed, while State Bank officials will brief IMF delegation on economic performance.

According to sources, Pakistan has achieved target of keeping foreign exchange reserves more than 17 billion dollars. IMF delegation will also be informed about increase in direct foreign investment. Global financial institution's mission will also be briefed on successful issuance of Eurobond and funds obtained from external sources.

According to sources, after negotiations with State Bank, IMF delegation will leave for Islamabad on September 25, where negotiations will be held with Finance Ministry, Privatization, Energy and FBR.

Talks for fifth installment of loan program will continue for 2 weeks, while global financial institution's mission will be briefed on economic activities till June. Targets under structural benchmarks will also be discussed with IMF, while Pakistan will negotiate with global financial institution on economic reforms targets.

During negotiations, targets related to circular debt of electricity and gas sectors along with reforms in energy sector will also be discussed.

According to sources, if negotiations are successful, Pakistan is likely to get a total of up to 1.2 billion dollars, in which about one billion dollars is expected to be received under EFF installment. In addition, Pakistan is also expected to get further 200 million dollars to deal with climate change.