Islamabad (HRNW)- Pakistan is likely to receive approval for a $1.2 billion tranche from the International Monetary Fund (IMF) as a key executive board meeting is scheduled to take place today. During the meeting, the third economic review of Pakistan and the release of the next tranche under the Extended Fund Facility (EFF) program are expected to be considered.
According to sources, Pakistan has already fulfilled the major conditions set by the IMF, paving the way for approval of the next installment of financial assistance. Officials say the meeting is also expected to approve the third economic review along with the second review of the Resilience and Sustainability Facility (RSF) program related to climate change. It is worth noting that the staff-level agreement between Pakistan and the IMF was reached on March 27 this year.
Sources in the Ministry of Finance indicate that petroleum levy collections may exceed the target of Rs1,468 billion, while the government is also considering further increasing the levy. Meanwhile, the IMF has urged Pakistan to reduce or phase out subsidies in several sectors, particularly in energy, as part of broader fiscal reforms.
Government officials say inflation has eased and economic indicators have shown improvement, but economic risks remain due to ongoing tensions in the Middle East. The government has assured the IMF of maintaining fiscal discipline and continuing economic reforms.
In addition, Pakistan is also likely to receive $200 million under the IMF’s Resilience and Sustainability Facility, aimed at supporting climate resilience and environmental projects. Following global financial meetings held in Washington, Pakistan highlighted its climate action plans, budget priorities, and financial needs for environmental initiatives, while signaling greater focus on climate policy in the upcoming national budget.
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