IMF officials will review Pakistan’s economic performance, foreign exchange reserves, investment flows and programme commitments during talks in Karachi and Islamabad.
KARACHI: An International Monetary Fund (IMF) mission has arrived in Pakistan to begin discussions on the next review of the country’s economic performance under its ongoing loan programme, officials said.
According to sources in the Ministry of Finance, the IMF team is currently in Karachi and is scheduled to begin technical-level discussions with officials of the State Bank of Pakistan (SBP) on Wednesday.
The initial talks will focus on key monetary and external sector indicators as part of the programme review. SBP officials are expected to brief the IMF delegation on recent economic developments, including foreign exchange reserves, monetary policy, imports and conditions in the foreign exchange market.
The discussions will also cover Pakistan’s progress in maintaining foreign exchange reserves above the $17 billion target. Officials are expected to review the country’s current account position and developments that could influence its external financing requirements.
The IMF team will also be briefed on the increase in foreign direct investment and measures being taken to improve investment inflows into the country.
Pakistani officials are expected to highlight the successful issuance of Eurobonds and brief the IMF delegation on funds secured through external sources as part of the country’s broader financing position.
The IMF delegation is expected to conclude its meetings with the central bank before travelling to Islamabad on Sept. 25. During its stay in the capital, the team is expected to meet representatives of provincial governments and the business community.
Formal programme-level negotiations between Pakistan and the IMF are scheduled to begin on Sept. 28 after Finance Minister Muhammad Aurangzeb returns from the United States.
The formal review will involve several rounds of discussions with officials from the Ministry of Finance, the Privatisation Ministry, the Ministry of Energy and the Federal Board of Revenue.
The review will assess Pakistan’s progress against commitments and targets agreed under the IMF programme. Its outcome will also help determine the country’s eligibility for the next loan tranche.
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