Pakistan, IMF to start negotiations on Thursday for release of second tranche $710 million of loan

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Pakistan and the International Monetary Fund (IMF) will start their negotiations on Thursday for the release of $710 million second tranche of a $3 billion loan. A review mission from the IMF will arrive in Islamabad on Thursday and review the economic performance of Pakistan during the first quarter -- July to September-- of the current fiscal year.

Pakistani government is looking to stabilise its debt-ridden economy ahead of the general elections expected in January. “The IMF team led by Nathan Porter will field a mission to Pakistan starting on November 2 on the first review under the current Stand-By Arrangement (SBA) of USD 3 billion," Esther Perez, the resident representative of the IMF, said last week.

According to media reports, the Fund had proposed November 7 in anticipation of a delay in compiling the first quarter data but the Pakistan’s finance ministry assured that all the relevant data was available for the review. In July this year, the Washington-based IMF approved the $3 billion loan to Pakistan and also released the first tranche of $1.2 billion.

“Pakistan has achieved the structural bench agreed with the IMF and its important condition of increasing gas prices has also been met. Similarly, the circular credit is also within the prescribed limit and the fiscal deficit is in accordance with the set target as well," the Express Tribune newspaper reported on Wednesday.

The newspaper also said that if the review mission is satisfied with Pakistan's actions, it will recommend the release of the next instalment of the loan to the IMF board, which will approve the release of $710 million in December to the country. The economy of Pakistan, which is battling an acute balance of payments crisis and falling