The International Monetary Fund (IMF) has made it clear to Pakistan that it must meet the targets outlined in the $3 billion Stand By Agreement.
The IMF delegation, led by Nathan Porter, arrived in Pakistan for two weeks of talks on the second tranche of the agreement.
While Pakistan assured the IMF that it is implementing the targets and conditions, a key point of contention in the talks will be Pakistan’s external financing needs. Additionally, the functioning of the forex market may pose challenges, as the IMF wants “full market determination of the exchange rate.”
Pakistan has made progress in areas such as circular debt management and cash transfers to beneficiaries. State Bank of Pakistan officials are on track to meet net international reserves targets, and the Federal Board of Revenue’s collection targets have been achieved.
