A delegation from the International Monetary Fund (IMF) has arrived in Pakistan to conduct a critical economic review, which will determine the release of the next $1 billion installment from the $7 billion bailout package. This review is essential for Pakistan’s ongoing economic stability as it continues efforts to recover from financial difficulties.
The review process, according to sources in the Ministry of Finance, will be conducted in two phases, running until March 15. The first phase will focus on technical discussions, while the second phase will involve high-level policy negotiations. The 9-member IMF team, led by Nathan Porter, will remain in Pakistan for nearly two weeks. During this period, they will provide recommendations for the upcoming 2025-2026 fiscal budget.
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The IMF delegation is expected to hold meetings with several ministries, including the Ministry of Finance, Energy, Planning, and the State Bank. Sources suggest that any relief for salaried individuals will hinge on IMF approval, which will be a key aspect of the negotiations.
Additionally, discussions will also center on around $1 billion in climate financing for Pakistan. This funding, under the IMF’s Resilience and Sustainability Trust, is aimed at supporting climate-related initiatives, such as transitioning to cleaner energy. Pakistan made a formal request for this financing last year to address its vulnerability to climate change, marking another significant topic of negotiation.
