IMF confirms visit to Pakistan to review $7bln loan program

ISLAMABAD: The International Monetary Fund (IMF) has confirmed that a delegation will visit Pakistan in mid-March to review the country’s $7 billion loan program, ARY News reported.

According to IMF representative, Mair Benitez, the delegation will hold discussions with Pakistani authorities on the first review under the loan program.

In addition to reviewing the loan program, the IMF delegation will also discuss Pakistan’s request for climate financing. Furthermore, a technical team from the IMF will visit Pakistan at the end of February to discuss technical aspects of climate financing.

The technical team will assess potential arrangements for climate financing and engage in discussions on related technical matters.

Also read: Pakistan restructures FBR on IMF demand

Prior to this, Finance Minister Muhammad Aurangzeb said that “Pakistan will hold talks with IMF delegation on February 24 for climate fund.”

Aurangzeb said Pakistan is expecting to get $1 to $1.5 bln from the international lender under climate funding, while another delegation of the IMF will arrive in Pakistan in March for the six-month review of the ongoing loan program.

The minister said Pakistan witnessed surplus current account for seven months and urged the need for the structural reforms to fix ‘DNA’ of the economy.

Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation’s vulnerability to climate change.

The country’s economy is on a long path to recovery after being stabilized under a $7 billion IMF Extended Fund Facility it secured late last year.

The Global Climate Risk Index places Pakistan among the countries most vulnerable to climate change.

Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700. The country’s economic struggles and high debt burden impinged its ability to respond to the disaster.