IMF mission in Karachi for loan review talks

An International Monetary Fund mission has arrived in Pakistan to begin the next review under the country's ongoing loan programme, Minute Mirror reported on Tuesday, citing sources in the Ministry of Finance.

The delegation is currently in Karachi and will start technical-level discussions with officials of the State Bank of Pakistan on Wednesday, according to the report. The initial talks will focus on key monetary and external sector indicators as part of the review process.

State Bank officials are expected to brief the IMF team on Pakistan's recent economic performance, including foreign exchange reserves, monetary policy, imports and developments in the foreign exchange market. They will also discuss the country's progress in maintaining foreign exchange reserves above the $17 billion target set under the programme.

The technical talks are expected to cover the current account position and developments that could affect Pakistan's external financing requirements. The IMF team will receive a briefing on the increase in foreign direct investment and measures aimed at improving foreign investment inflows, with Pakistani officials expected to highlight the successful issuance of Eurobonds and other external funding.

After concluding its meetings with the central bank, the delegation will travel to Islamabad on September 25. There it is expected to hold discussions with provincial governments and representatives of the business community.

Formal programme-level negotiations between Pakistan and the IMF are scheduled to begin on September 28, after Finance Minister Muhammad Aurangzeb returns from the United States. The formal review will involve several rounds of discussions with officials from the Ministry of Finance, the Privatisation Ministry, the Ministry of Energy and the Federal Board of Revenue.

The review will assess Pakistan's progress against the commitments and targets agreed under the IMF programme and will help determine the country's eligibility for the next loan tranche.

The technical-level talks in Karachi are the first stage of a review that will continue in the federal capital later this week.

Business Recorder reported that the mission's visit covers reviews under the Extended Fund Facility and the Resilience and Sustainability Facility. Neither report included further comment from the IMF or the Government of Pakistan.