Pakistan and the International Monetary Fund (IMF) on Thursday reached a consensus on pending issues to resume a $6.5 billion bailout package, crucial funding for a country facing a balance-of-payments crisis, a private TV channel reported.
The IMF mission has been in Islamabad since 31 January to conclude the ninth review of the economy and unlock the next tranche of its loan. It was looking to sort out concerns over fiscal policy that have stalled the release of more than $1 billion from a $6.5 billion bailout package signed in 2019.
The sources, familiar with the development, said that a meeting took place between Prime Minister Shehbaz Sharif and the IMF delegation, where the mission informed the premier about the agreement.
The prime minister, who interacted with the Fund officials in Islamabad via video link from Lahore, approved the agreement, the sources added.
The development comes hours after Minister for Finance and Revenue Ishaq Dar said negotiations between Pakistan and the Fund were “on track” and “we will announce good news soon.”
On condition of anonymity, sources said that power sector and primary balance remained major issues during technical-level talks.
On Wednesday, Minister of State for Finance Dr Aisha Ghaus Pasha had said that some understanding was reached with the IMF and some clearance had been secured at the prime minister level.
While talking to reporters on the second day of policy-level talks with the fund, the minister acknowledged that the IMF wanted more clearance on some issues.
Pasha said discussions with the IMF were moving in a positive direction and the government’s entire focus during the negotiations has been on protecting the common man.
