IMF, Pakistan to resume talks on loan: Report

Islamabad, Feb 13: Talks between the International Monetary Fund and Pakistan will resume virtually on Monday, a Pakistani official said, as the two sides look to reach a deal to unlock funding critical to keep the cash-strapped south Asian country afloat.

 

 

 

The two could not reach a deal last week and a visiting IMF delegation departed Islamabad after 10 days of talks but said negotiations would continue. Pakistan is in dire need of funds as it battles a wrenching economic crisis.

 

 

 

"Duration (of the talks) cannot be confirmed but we intend to wrap these up at the soonest," Finance Secretary Hamed Yaqoob Sheikh told Reuters in a text message, confirming that talks were resuming on Monday. Talks center around reaching an agreement on a reforms agenda under the country's $6.5 bailout program, which it entered in 2019. An agreement on the ninth review of the program would release over $1.1 billion.

 

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Pakistan's foreign exchange reserves held by the central bank have fallen to $2.9 billion, barely enough to cover three weeks of imports. A resumption of the IMF program would also unlock other avenues of funding for Pakistan.

An agreement, if reached, would still need to be cleared by the IMF board.