Pakistan to hold talks with IMF concerning next tranche of $6BN loan program

After months of delay, Pakistan is finally set to resume talks with the International Monetary Fund (IMF) regarding a $6 billion loan package. In a recent development, the five-day round of technical discussions is set to begin virtually from October 4. The IMF team will be joining from Doha, Qatar, and thereafter a successful implementation of the talks will further the facilitate and immediate distribution of $1 billion by the IMF. 

Meanwhile, Pakistani Finance Minister Shaukat Tarin is looking forward to a face-to-face meeting with the top IMF management in Washington on October 15 and is hoping to conclude the discussion on a positive note, reported The Express Tribune on Sunday. However, the IMF has not yet shown any willingness for an in-person meeting and is instead emphasizing virtual meetings. Thereafter, the schedule for the policy level talks remains uncertain and will be finalized very soon. 

Notably, the policy level talks are likely to collide with the IMF WB meetings which are scheduled for October 11 to October 17. 

According to sources, the Pakistani Finance Minister has shown a bit leniency in accepting the IMF's demands as the wait is becoming costly for the government which is dependent heavily on foreign loans. 

Both sides are looking forward to agreeing on a middle ground. Meanwhile, the IMF has urged Pakistan to increase power tariffs under the view of an increase in electricity prices. 

Previous talks between Pakistan and IMF regarding the $6 billion loan program

Earlier in the month of June, Pakistan and the International Monetary Fund (IMF) held unresolved discussions over a sixth review of the $6 billion loan programme followed by a delay in the next tranche. Finance Minister Shaukat Tarin informed that the talks with the Fund over the sixth economic review remained inconclusive. followed by a delay in the next tranche.  

Meanwhile, Pakistan has received $498.7 mn as a third tranche of the $6 billion Extended Fund Facility from the International Monetary Fund, in March. 

Image: Twitter/@Shaukat_Tarin/AP