Last tranche: IMF to negotiate only with the new government

IMF tranche

The International Monetary Fund (IMF) is set to engage in discussions with Pakistan’s newly elected government regarding the disbursement of the final loan tranche under the Stand-By Arrangement (SBA), according to sources.

Pakistan is slated to receive a final tranche of $1.1 billion under the SBA, with the targets outlined by the IMF already met by the caretaker government.

However, the IMF delegation is reportedly disinclined to negotiate with the caretaker government, preferring to engage with the incoming elected government.

While the caretaker government’s performance has met IMF targets, it is noted that discussions with the IMF will likely occur only after the establishment of the new government.

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These talks are expected to take place in late February or early March, as per sources from the finance ministry.

Additionally, the IMF has approved a debt rescheduling plan for Pakistan International Airlines (PIA) privatization.

Negotiations between officials from the Ministry of Privatization, the Ministry of Finance, and the IMF have resulted in an agreement whereby the IMF will cover the interest on a PIA loan for one year.

This agreement allows the government to repay a Rs280 billion loan to banks with a 12 percent interest rate over the course of a year.

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