Pakistan, IMF 'reach deal' for release of US$1 bn tranche

ISLAMABAD: Pakistan and International Monetary Fund (IMF) have reached a deal for the release of a US$1 billion tranche after the latter gave its nod to the budgetary adjustments for fiscal year 2022-23, ARY NEWS reported.

According to officials of the finance ministry, the Fund has agreed to the budgetary estimates set for the next fiscal year and the economic policies of the country.

“The IMF will soon release a handout confirming the staff level agreement between the two sides,” they said.

The development came in the late-night talks between the IMF and finance ministry officials led by Minister Miftah Ismail.

Yesterday, sources within the Finance Ministry said talks with the IMF can be held online tonight, in which Pakistani officials will brief the fund about so far actions taken by Islamabad for the revival of the economy.

The IMF fund would be briefed that subsidy on the fuel has been completely taken back by the federal government, the sources said and added Pakistan to soon get ‘good news’ from IMF.

Finance Minister Miftah Ismail on Monday expressed hope that the stalled International Monetary Fund’s (IMF) programme would be revived ‘within one or two days’.

Talking to journalists at Parliament House, the federal minister said that he was hopeful that an agreement with the global lender for the revival of the Extended Fund Facility (EFF) would be reached within one or two days.

“IMF has no relation with the increase in salaries. Also, the tax exemption to the people earning below 1.2 million [annually] will remain in place,” the finance minister said.