The fifth tranche of the IMF program is being prepared.Preparations underway for fifth tranche of the IMF program.
ISLAMABAD: (Mudassar Ali Rana) — Pakistan has officially started the process of finalizing the fifth tranche of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) program.
Next month, talks with the IMF are expected to resume, with an IMF delegation coming to Pakistan, according to the sources from the Ministry of Finance.
All relevant ministries and departments have been instructed by the Finance Ministry to prepare new data and performance reports to support these critical negotiations. These entities will update the visiting IMF delegation on the structural benchmarks and progress towards economic reform targets.
The talks are expected to be quite intensive on several important issues, such as reforms in the energy sector and the elimination of circular debt in the power and gas industries, sources said.
Under the existing lending model, Pakistan is likely to receive a total of $1.2 billion, if the talks are successful. This includes approximately $1 billion for the fifth tranche, as well as approximately $200 million for financing for climate resilience and disaster recovery.