Pakistan’s finance minister, Muhammad Aurangzeb, expressed confidence as talks for the first review of the country’s $7 billion IMF bailout programme began on Tuesday. The country secured this Extended Fund Facility (EFF) last summer to help stabilize its economy amid an ongoing crisis.
Aurangzeb stated that Pakistan was “well positioned” for the review, which is crucial for unlocking further funding. The bailout has been pivotal in stabilizing Pakistan’s economy, and the government remains hopeful that it will pave the way for long-term recovery.
“We will have two rounds of talks: first, technical, and then policy-level discussions,” Aurangzeb told Reuters, signaling a structured approach to the review process.
The talks, led by the finance minister, officially commenced with a kick-off meeting between Pakistani authorities and the IMF delegation, headed by Nathan Porter, the IMF’s mission chief for Pakistan. The meeting marks the start of a two-week negotiation period.
The review will cover Pakistan’s economic performance from July to December 2024, with a successful outcome potentially unlocking the next $1 billion tranche of the loan. The discussions will focus initially on technical issues before shifting to policy-level talks in the second phase.
Sources within the Ministry of Finance indicated that the 9-member IMF team will meet with key government institutions, including the Ministry of Finance, State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Ministry of Energy, and others. Separate discussions will also take place with provincial representatives from Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.
The talks will also involve reviewing the budget for 2025-26, which is currently in the process of being formulated. The outcome of this review will be a critical step in determining Pakistan’s future economic direction and securing continued support from the IMF.
