ISLAMABAD, MAR 4 (DNA):Pakistan was “well positioned” for the first review of its $7 billion International Monetary Fund bailout programme as talks with the global lender began on Tuesday, Finance Minister Muhammad Aurangzeb told Reuters.
Islamabad secured the $7 billion Extended Fund Facility (EFF) last summer to help claw its way out of an economic crisis.
The programme has played a key role in stabilising Pakistan’s economy and the government has said the country is on course for a long-term recovery.
“They are here. We will have two rounds of talks, first technical and then policy level,” Finance Minister Muhammad Aurangzeb said.
“I think we are well positioned” for the review, he said.
The finance ministry released a picture on Tuesday morning showing its officials meeting with IMF representatives.
The IMF team usually spends around two weeks reviewing fiscal reforms and policy.
A separate IMF team was in Pakistan last week to discuss around $1 billion in climate financing on top of the EFF.
Media reported that the IMF review mission and the government would discuss the performance of various sectors of the economy in the first half (July-Dec) period, evaluating any requirement for making adjustments in the macroeconomic and fiscal framework for the whole financial year 2024-25.
The crucial part would be formulating the broad parameters for the major contours of the next budget for 2025-26. If both sides cannot evolve a broader consensus on staff-level agreement, it might linger on till approval of the budget for 2025-26 from Parliament.
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