Pakistan, IMF Extend Talks Over Final Loan Tranche to Iron Out Details

Pakistan and the International Monetary Fund (IMF) Monday extended the last review of Pakistan’s $3 billion standby arrangement to iron out details. Sources told ProPakistani that the second review was set to conclude today, however, despite positive discussions, there are some unfinished agenda items. Both sides are expected to reach an agreement tomorrow after a short final round of talks after which a joint statement will be issued. Sources said that the IMF has asked Pakistan to provide further details of external financing arrangements. Earlier in the day, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) also decided to keep the policy rate unchanged at 22 percent, fulfilling another demand of the IMF. Pakistan has also assured the IMF of undertaking reforms in the energy sector and taxation regime. The country is also likely to request IMF for a new, much bigger, bailout package. Talks on the new package are expected to take place in Washington next month.