Pakistan and the International Monetary Fund (IMF) are set to commence discussions on November 2 to secure the release of the second loan tranche, totaling $710 million. These discussions will mark the first review of the second loan tranche, with a staff-level agreement paving the way for IMF board approval in December.
In July of this year, the IMF disbursed the initial tranche of $1.2 billion, and the meeting was presided over by Dr. Shamshad Akhtar, the Caretaker Federal Minister for Finance, Revenue, and Economic Affairs, as indicated in the finance ministry’s press statement.
Additionally, the Economic Coordination Committee (ECC) approved the immediate import of 200,000 metric tons of Urea fertilizers, following a detailed discussion of a proposal from the Ministry of Industries and Production regarding measures to meet the urea requirements for the Rabi season 2023-24.
This development is a response to the IMF’s repeated requests for Pakistan to promptly raise gas tariffs, seeking a 100% increase in gas tariff rates to mitigate losses and reduce circular debt in the country’s gas sector. An IMF team, led by Nathan Porter, will embark on a mission to Pakistan starting November 2, marking the first review under the existing Stand-By Arrangement (SBA) of $3 billion.
