The International Monetary Fund has stated that encouraging progress has been made in ongoing discussions with Pakistan and that the talks are expected to be finalized within the next few days. The IMF issued a statement following negotiations held with Pakistan from February 25 to March 11.
According to the statement, the IMF appreciated Pakistan’s performance in the areas of reforms and environmental initiatives, noting that significant progress has been made in these sectors. However, a staff-level agreement under the $7 billion Extended Fund Facility program has not yet been reached between IMF officials and Pakistani authorities.
The IMF said that discussions with Pakistan showed positive progress on the reform agenda and acknowledged the steps taken by the government to implement economic reforms. The institution also highlighted progress in measures aimed at addressing climate change.
The statement added that the implementation of the program has broadly remained in line with agreed commitments, while discussions were also held on reducing the fiscal deficit and strengthening public finances.
According to the IMF, negotiations also covered reforms in the energy sector and measures to improve its performance, while talks were held with Pakistan’s economic team regarding increasing spending on social protection, health, and education.
The IMF emphasized the need to maintain a tight monetary policy in order to keep inflation under control and sustain economic stability.
During the negotiations, the potential economic impact of the ongoing conflict in the Middle East was also discussed, including its possible implications for Pakistan’s economy. The IMF stated that the discussions are expected to be finalized within the coming days.
