Pakistan and IMF staff-level agreement expected soon

Pakistan and the International Monetary Fund (IMF) are expected to reach a staff-level agreement soon after which the agreement will be presented to the IMF Executive Board for approval.

Pakistan and the International Monetary Fund (IMF) are expected to reach a staff-level agreement soon after which the agreement will be presented to the IMF Executive Board for approval.

According to sources negotiations between Pakistan and the IMF have concluded with discussions with the IMF delegation reportedly ending on a positive note.

Official sources said Pakistan is fully implementing the commitments under its IMF programme and continues to take steps aimed at meeting the programme’s targets.

Sources said measures are being taken to increase government revenue and improve tax collection. The government is also accelerating its privatisation programme as part of efforts to strengthen the economy and improve the performance of state-owned enterprises.

According to the sources, work is also underway to reduce losses in power distribution companies. The government is taking additional measures to address financial challenges in the energy sector including efforts to prevent the accumulation of circular debt in the gas sector.

The expected staff-level agreement would represent an important step in Pakistan’s ongoing engagement with the IMF. However, the agreement would still need to be formally approved by the IMF’s Executive Board before it becomes effective as part of the programme.

The latest development comes as Pakistan continues to implement economic and fiscal reforms under its IMF programme. The government has been focusing on improving revenue collection reducing losses in the energy sector, advancing privatisation and addressing structural economic challenges.

The conclusion of negotiations is expected to provide greater clarity on the next phase of Pakistan’s IMF programme once the staff-level agreement is finalized and subsequently placed before the Executive Board.

Further details regarding the agreement including its financial terms and specific policy commitments are expected to emerge once the formal process is completed.