Pakistan and the International Monetary Fund (IMF) are set to resume talks for the revival of a $6 billion derailed programme next week, in which both the sides would try to find a middle ground on the contentious issue of increase in electricity prices.
According to a report by The Express Tribune, the IMF team joining from Doha, Qatar, will begin the five-day round of technical discussions with Islamabad will begin virtually on October 4.
However, the report added that although Finance Minister Shaukat Tarin was keen to conclude the parleys on a positive note during face-to-face meetings with the top IMF management in Washington on October 15, the Fund had not yet shown its willingness for the face-to-face meetings and instead proposed virtual meetings for October 13 to 15.
Therefore, the schedule of the policy-level talks remains tentative and it will be finalised next week, the report said quoting finance ministry sources.
The policy level talks are coinciding with the annual IMF-WB meetings that will take place from October 11 to 17th. The Pakistan’s embassy in Washington and the State Bank of Pakistan (SBP) governor are trying to get dates from the IMF top management for a physical meeting.
The successful conclusion of the talks would facilitate immediate disbursement of $1 billion by the IMF.
Pakistan and the IMF had signed the $6 billion deal in July 2019 but the programme was derailed in January 2020 and restored briefly in March this year before again going off the track in June. From June to August there were no serious discussions between the two sides.
Another crucial question that will be decided in the coming two weeks is whether Pakistan wants to exit from the IMF programme at its original schedule of September 2022 or it needs extension to get the remaining $4 billion loan.
