Pakistan says conditions for next $1.2 billion IMF loan tranche met: report

An International Monetary Fund review team is likely to visit Islamabad at the end of this month or early next month.

Islamabad:

Pakistan has met the International Monetary Fund’s benchmark for maintaining status quo in the energy sector, officials said ahead of an IMF cash review mission to Pakistan, an outcome that could help secure the next tranche of $1.2 billion in loans. A strapped country.

According to The Express Tribune, energy ministry officials said they had achieved their end-December targets, including controlling the flow of circular debt below Rs 38,500 crore, raising power prices in a timely manner and slowing down the growth of line losses.

The International Monetary Fund will review implementation of the targets during loan negotiations for a second review of the $3 billion rescue package.

If the federal and provincial governments are formed, an IMF review team is likely to visit Islamabad by the end of this month or early next month.

The newspaper quoted sources as saying that the increase of Rs 378 billion to Pakistan, which was slightly better than the International Monetary Fund’s requirement, was subject to the restriction of circular debt flows to Pakistan of Rs 385 billion at the end of December.

According to the newspaper, Pakistan has committed to the International Monetary Fund to control its circular debt at the June 2023 level of Pakistani rupees 2.31 trillion by the end of this fiscal year.

Recently, a senior IMF official said it looked forward to working with the new government in Islamabad while reacting to jailed former Prime Minister Imran Khan’s demand that the IMF conduct an “audit” of the election results before approving any new loans. Requesting silence. A cash-strapped country.

Pakistan relies heavily on the International Monetary Fund and is currently implementing a short-term $3 billion agreement. The global lender has already made two loans, with the final $1.2 tranche expected to be disbursed in late March or early April.

Experts say the new government will have to enter into new negotiations with the International Monetary Fund to obtain new loans after taking office.

Previously, an International Monetary Fund review team was originally scheduled to visit the country in the first week of February, but the delegation refused to visit on the eve of the election.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)