Pakistan Nears IMF Deal for $1.24bn Loan Tranche
Pakistan is expected to finalise a staff level agreement with the International Monetary Fund this week, paving the way for a fresh 1.24 billion dollar payout.
Finance Minister Muhammad Aurangzeb confirmed that talks with the global lender are nearing completion after several weeks of detailed and intensive discussions.
Speaking to Reuters on the sidelines of the IMF World Bank meetings, Aurangzeb said both sides held constructive talks on quantitative and structural benchmarks.
He expressed optimism that the staff level agreement would be completed within days, allowing the IMF executive board to approve the next funding tranche.
The agreement includes the second review of the seven billion dollar Extended Fund Facility and the first review of its 1.4 billion dollar sustainability programme.
Both arrangements, signed in 2024, aim to stabilise the economy of Pakistan after record inflation, a weakening currency, and a widening external and fiscal deficit.
Aurangzeb stated that the government is committed to implementing reforms that improve revenue generation, enhance governance, and ensure long term macroeconomic stability.
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He said these initiatives are vital for maintaining investor confidence, encouraging financial discipline, and sustaining Pakistan’s fragile economic recovery momentum.
The finance minister also announced plans to launch the first green Panda bond of Pakistan, denominated in Chinese yuan, by the end of this year.
Additionally, the government aims to re-enter international capital markets in 2026 with a bond issue worth at least one billion dollars.
Aurangzeb said the privatisation drive would accelerate this fiscal year, focusing on the sale of Pakistan International Airlines and three power distribution companies.
He described privatisation as a key element of the broader economic strategy of Pakistan designed to attract investment and reduce state financial burdens.
Officials said several domestic business groups have shown interest in purchasing PIA after profitable routes to Europe and Britain were reopened recently.
The transaction would mark first major privatisation in nearly two decades, with final bids expected to be received later this year.
