Pakistan and IMF begin talks on $1.2 billion loan disbursement

Pakistan and the International Monetary Fund (IMF) have commenced formal negotiations to review existing bailout programs. The discussions involve the fourth review of the 37-month, $7 billion Extended Fund Facility (EFF) and the third review of the $1.4 billion Resilience and Sustainability Facility (RSF).

A successful conclusion to these reviews could unlock approximately $1.2 billion in disbursements, with $1 billion potentially coming from the EFF and $200 million from the RSF. These funds could be released by late November or early December.

The IMF mission, led by Iva Petrova, is expected to remain in the country for nearly two weeks. Key topics for discussion include broadening the tax base, reducing circular debt in the energy sector, managing foreign exchange reserves, and implementing anti-money laundering measures. The negotiations occur as Pakistan faces economic pressures, including rising fuel costs and potential oil supply disruptions.