LAHORE: Finance Minister Ishaq Dar said a staff-level agreement for a crucial bailout deal with the International Monetary Fund (IMF) was “very close” and expected in the next 24 hours.
Pakistan is racing against time to unlock at least $1.1 billion under the lender’s ninth review of a $6.5-billion Extended Fund Facility (EFF) agreed in 2019. The programme expires on Friday.
“We are very close to signing a staff-level agreement with the IMF,” minister Ishaq Dar told Reuters late on Thursday.
“I think it should come some time tonight or maximum within 24 hours. We have finalised everything.”
A source familiar with talks told Reuters that Pakistan and the global lender were also in discussions for the release of the full $2.5 billion pending under the IMF programme.
The source said the staff-level agreement was to set to initially unlock around $1.1 billion and then be followed by a “standby agreement” which could release the rest after the programme finishes on Saturday.
A representative for the IMF in Pakistan did not immediately respond to a request for comment.
Read More: Pakistan ‘hopeful’ of IMF deal as loan programme set to expire tomorrow
The agreement, which would be subject to approval by the IMF board, has faced an eight-month delay.
The funds under discussion would offer some respite to Pakistan which is battling an acute balance of payments crisis and falling foreign exchange reserves.
A total of $4 billion have already been released. Dar had earlier told media the government was working on a mechanism to try to unlock the full $2.5 billion pending under the IMF programme.
It was unclear what portion of the funds would be released in the announcement he expected in the next 24 hours.
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