Pakistan and IMF formally launch third review of EFF programme

IMF – (Web Desk) – Negotiations between Pakistan and the International Monetary Fund (IMF) for the third review of the Extended Fund Facility (EFF) Programme officially started in Islamabad on Monday. The Pakistani delegation was led by Minister Muhammad Aurangzeb. Officials also confirmed that discussions for the second review of the Climate Financing Programme would be held online.

According to sources, the review will take place in two phases. The first phase will focus on technical-level talks, during which Pakistan will share relevant data with IMF officials. The second phase will involve policy-level negotiations, including a review of Pakistan’s performance during the first six months of the current financial year.

The IMF delegation will assess Pakistan’s overall economic situation as well as the measures taken to address climate change. Sources added that Pakistan has successfully achieved most of the targets set by the international lender, with the exception of tax-related goals.

The strategy to be adopted for the next year’s budget would also come under discussion at the talks.

Under both programmes, sources went on to say, Pakistan would receive from the Fund $1.20 billion in the next tranches.

In case, the talks remain successful, Pakistan would receive the fourth tranche under the Extended Fund Facility Programme, while it would receive the second tranche under the Climate Financing Programme.

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The country has so far received $3.30 billion from the Fund under both these programmes.

Presently, Pakistan is simultaneously holding negotiations with the IMF under two loan programmes: the country is holding negotiations under the $7 billion Extended Fund Facility Programme and $1.40 billion Climate Financing Programme.