IMF missions due to Islamabad to finance climate, EFF Review

• Pakistan watching $ 2-2.5 billion through the increase in EFF via RSF.
• Govt prepares the IMF report to meet the conditions for it.
  
• Reporting factors about the selection of PSDP drawings.
  

ISLAMABAD: The International Monetary Fund (IMF) confirmed that two of its missions will visit Pakistan in the next two weeks. The first mission will focus on climate funding discussions, while the second will make the first review of Pakistan’s progress as part of EFF Extended Fund (EFF), The news reported on Saturday.

“A IMF staff team is scheduled to visit Pakistan on the early course of discussions about the first review under Pakistan supported and the Authorities’ request for assistance under the resilience and sustainability agreement (RSF),” The Head of IMF resident Mahir Binici said in a brief statement.

The employee further added that a technical team would be in Pakistan starting at the end of February to discuss technical issues on a possible RSF arrangement.

The confirmation comes days after the publication said that a IMF review mission was due to Pakistan in the first week of March.

Prime Minister Shehbaz Sharif, the government, secured the approval of the IMF Executive Council on the Fresh Loan program in September 2024, followed by the disbursement of a Tranche $ 1.02 billion.

With IMF officials in Pakistan, Islamabad will also have to develop a broader consensus on the big outlines of the next budget for 2025-26 with its lender.

If both sides fail to reach consensus, the completion of the first review may be linked to the approval of the budget by parliament.

As it was agreed, the first review and approval of a billion dollars by the IMF Executive Council is scheduled to take place until April 2025.

However, according to official sources The news In backdrop discussions that first of all, a IMF technical team would arrive in Islamabad next Monday (February 24) to hold talks under the RSF under which Pakistan had applied for $ 1 to 1.5 billion funding for funding to increase the existing $ 7 billion loan under EFF up to $ 8 or 8.5 billions of dollars.

The findings of this technical mission will be stabilized on the occasion of the first revision in the context of the EFF arrangement, as the IMF review is scheduled to visit Islamabad by early next month from March 4, 2025, for the discussion of various Sections of the economy for nearly 10 to 12 days, after which fund staff will last at least four to six weeks for the Presentation of his report before the IMF Executive Council, provided that both sides caused a personnel agreement in the upcoming review talks.

In the case of smooth sailing both in technical and review missions, Pakistan will be able to secure $ 2 to $ 2.5 billion through the release of a second installments of $ 1 billion $ 1.5 billion.

In order to qualify for the RSF, Pakistan has prepared a public investment and parameter report under the IMF conditions and the large outlines will be discussed during the upcoming Parleys with the IMF technical team next week. The federal government has also agreed with the IMF that no provincial projects will be funded by the Federal Development Distribution on PSDP.

This report has incorporated 10 factors on the basis of which the next Public Sector Development Program (PSDP) III) Excellent and High Score Score Plans (IV) Pre-Complex DDWP Projects against specific criteria, (v) projects funded by strangers with sufficient rupee coverage distribution within IBC, (vi) Nature Projects in 20 Less Developed Areas, (VII) Projects in Recent Companion (NMDS) and other areas to ensure fair regional development (VIII) PPP projects, where PSDP funding is used either as a shareholder or as a vacancy Sustainability, (IX) Climate and durable projects, (x) ready for investment projects.

It has also been decided with the agreement of the National Economic Council (NEC) that only 10% of the new projects will be included in the PSDP list by the next budget for 2025-26.

Speaking to this secretary, the Minister of Design Ahsan Iqbal said that the share of the province’s projects on PSDP increased from 14% in 2018 to over 42% by 2022, leaving no tax space for significant development projects at national level through of PSDP.

He claimed that the development framework was destroyed during the regime under the leadership of the PTI and now the government was binding to include only 10% of new projects on the PSDP list.

All resources will be diverted towards the completion of continuing projects, he said and added that rejection would be reduced in the coming years.