Pakistan is on track to receive the final installment of the $3 billion standby arrangement following the country’s officials meeting the economic performance criteria outlined by the International Monetary Fund (IMF), as per reports.
Reports indicate that the IMF mission in Pakistan has concluded its review and is preparing to announce an agreement with the government for the disbursement of the last installment, totaling $1.1 billion.
If successful, the agreement will be presented to the IMF executive board in April for their ultimate approval.
This development follows recent discussions suggesting that negotiations with the global lending institution may be prolonged due to the parties failing to reach a consensus.
It’s noted that the IMF has urged the government to regulate and tax cryptocurrency and other online trading platforms.
Additionally, discussions between Pakistan and the IMF have included talks on privatising financially struggling state-owned enterprises, with Pakistan International Airlines being a priority for privatisation.
Earlier, the government declined the IMF’s proposal to revisit the National Finance Commission (NFC) Award, citing constitutional concerns.
The IMF had suggested reviewing the NFC Award during the second round of talks, citing a shortage of federal funds.
Government sources said that any recommendation on the NFC Award that contradicts the constitution will not be endorsed.
Pakistan managed to avoid a potential sovereign default after the previous coalition government, led by Pakistan Muslim League-Nawaz (PML-N), reached a staff-level agreement with the IMF on a $3 billion SBA.
Finance Minister Muhammad Aurangzeb expressed Pakistan’s intention to secure a larger and more enduring program with the IMF, aiming to align with the country’s quota. He made these remarks while speaking to reporters in Islamabad on March 13.
