Ahmed Mukhtar Naqshbandi
ISLAMABAD: Talks between Pakistani officials and the International Monetary Fund (IMF) will resume virtually today, a Pakistani official said, as the two sides look to reach an agreement to unlock funding critical to keep the cash-strapped south Asian country afloat.
Last week, the two sides could not reach a deal, and a visiting IMF delegation left Islamabad after 10 days of detailed talks but said negotiations would continue. Pakistan is in dire need of finances as it battles a wrenching economic crisis.
“Duration of the negotiations cannot be confirmed, but we intend to wrap these up soon,” Finance Secretary Hamed Yaqoob Sheikh told Reuters in a text message, confirming that talks with IMF were resuming on Monday.
Earlier rounds of Pakistan, IMF talks
Talks center around reaching a deal on a reforms agenda under Pakistan’s $6.5 bailout program, which it entered in 2019. A possible deal on the ninth review of the program would release over $1.1 billion.
Foreign exchange reserves of Pakistan held by the State Bank of Pakistan (SBP) have fallen to $2.9 billion, barely enough to cover 21 days of imports. A resumption of the IMF loan program would also unlock other funding avenues for Pakistan.
If reached, an agreement would still need to be cleared by the IMF board.
