IMF delegation 'arrives' in Pakistan for loan talks

ISLAMABAD: An International Monetary Fund (IMF) delegation has arrived in Pakistan for loan talks, ARY News reported on Monday.

According to sources within the Ministry of Finance, the IMF team will review Pakistan’s economic performance and hold talks with relevant ministries.

Sources said that the government already briefed the delegation on its economic goals and achievements during the first quarter of the fiscal year. Key areas of discussion include tax collection, where Pakistan has seen a 96.6% achievement of its tax target from July to September.

The IMF delegation is expected to meet with Minister of State for Finance Muhammad Aurangzeb, Chairman FBR, and State Bank officials to discuss the country’s economic situation and future plans.

Earlier, sources revealed that during the visit, IMF and Pakistani officials will discuss new concessional loans to support climate change initiatives and talks will also cover provincial budgets and their allocation for climate change measures.

Sources said that the delegation will review the existing IMF loan program and provide an initial briefing and discussions may address Pakistan’s tax revenue and potential shortfalls between July and September.

It is important to mention here that the government of Pakistan sought an additional $2 billion from IMF to address the impacts of climate change.

This development came after Pakistan’s initial request for climate financing was not immediately approved by the IMF, sources said.

Sources revealed that Pakistan took steps to address fiscal sustainability and mobilize revenue, including passing the FY24 budget, which advances a primary surplus of around 0.4 percent of GDP. The government has also committed to ensuring a market-determined exchange rate and reducing inflation.

On September 27, Pakistan requested an additional $1.5 billion loan from IMF to combat the impacts of climate change in the country.

The loan will support Pakistan’s Climate Resilience and Sustainability Facility, which aims to promote economic stability and sustainable development in the country.

It is important to note here that the International Monetary Fund (IMF) Executive Board on September 25 approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of about US$7 billion.