Pakistan, IMF to begin $7 billion loan review talks tomorrow

Negotiations between Pakistan and the International Monetary Fund (IMF) for the review of the $7 billion loan program will commence tomorrow, ARY News reported on Sunday, citing sources.

According to details, the successful talks could lead to the release of the next $1 billion tranche for Pakistan by the IMF.

The economic review discussions will continue until March 15 and will be conducted in two phases—the first focusing on technical aspects and the second on policy-level negotiations.

The negotiations will involve the Ministry of Finance, Ministry of Energy, Planning Commission, State Bank of Pakistan, FBR, OGRA, NEPRA, and other key institutions.

Additionally, separate meetings will be held with representatives from Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.

Sources reveal that a nine-member IMF delegation, led by Nathan Porter, will stay in Pakistan for nearly two weeks and will also provide recommendations for the federal budget 2025-26.

The sources added. If an agreement is reached between IMF and Pakistan, the salaried class may receive some relief.

Read more: IMF review mission to arrive in Pakistan on March 03

Separately, the International Monetary Fund (IMF) team held talks with the Pakistani officials over climate finance on Wednesday.

An IMF delegation arrived in Pakistan to discuss climate financing with the authorities.

The lenders team objected over the proposed sales tax relief on electric vehicles and rejected the relief offered in the country’s electric vehicle policy, sources said.

The IMF team also opposed sales tax concession in local sale of the parts of electric vehicles, sources shared. The IMF officials suggested routine tax rate in the new electric vehicles policy.