Five-day Pak-IMF loan assessment talks begin today
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Five days of crucial talks between Pakistan and the International Monetary Fund (IMF) are set to begin today, with the IMF delegation scheduled to arrive at Pakistan’s Ministry of Finance on Monday.
According to the 24NewsHD TV channel, IMF Mission Chief Nathan Porter is leading the talks. During the talks, Pakistan’s first-quarter economic performance will be presented, and tax collections and external financing will be discussed.
Representatives from Pakistan’s Ministry of Finance, Federal Board of Revenue (FBR), and State Bank of Pakistan (SBP) will participate in the negotiations, which are set to continue until November 15.
According to the sources, this visit will involve a detailed assessment of Pakistan's recent economic performance and reforms under the ongoing loan programme.
Two months ago, the IMF Board approved a 37-month, $7 billion Extended Fund Facility, with Pakistan receiving an initial Special Drawing Rights (SDRs) allocation of 760 million.
The channel reported that the initial review for this current loan will officially begin in the first quarter of 2025.
IMF Mission Chief Nathan Porter noted that the IMF Executive Board approved the $7 billion loan package for Pakistan, with a focus on stabilising the macroeconomy through sound policies and structural reforms.
Pakistan’s State Bank (SBP) confirmed receipt of a $1 billion tranche from the IMF on September 27 this year as part of a new financial programme.
The IMF reported that Pakistan's economic conditions have significantly improved since mid-2023, with reduced inflation, stable currency exchange rates, and an increase in foreign reserves.
In its October 22 statement, the IMF also projected that Pakistan's economy would grow by 3.2 percent in 2024, maintaining the same rate in 2025.
The report highlighted that Pakistan’s inflation is expected to drop to 9.5 percent in 2024, compared to last year’s high of 23.4 percent.
The IMF also forecasts a slight reduction in unemployment to 7.5 percent, down from 8 percent last year, while the current account deficit is likely to reach negative 0.9 percent this year, following a negative 0.2 percent figure in 2023.
Reporter: Waqas Azeem