Pakistan fails to strike agreement with IMF for release of $1 billion loan tranche

A woman walks past an International Monetary Fund headquarters (IMF) building in Washington, USA, on April 5, 2021. (AFP/File)

• Pakistan reached an accord with IMF for three-year, $6 billion bailout package in 2019
• Pakistani and IMF officials are currently engaged in fresh around of staff-level talks in Washington

ISLAMABAD: The International Monetary Fund (IMF) and Pakistan have failed to strike a staff-level agreement under a $6 billion Extended Fund Facility, or bailout package, Pakistani media reported on Sunday. 
In 2019, Pakistan reached an accord with the International Monetary Fund for a three-year, $6 billion bailout package aimed at shoring up fragile public finances and strengthening a slowing economy.
Pakistani and IMF officials are currently engaged in a fresh round of talks from October 4 to 15 for the release of a $1 billion tranche of the loan.
“The talks failed despite Pakistan having implemented a prior condition of increasing electricity and petroleum products prices,” the Express Tribune newspaper reported. “However, both sides have shown resolve to remain engaged.”
“The IMF team remains engaged with our Pakistani counterparts on moving forward our work agenda and we are looking forward to our continued discussions with the Pakistani authorities on the set of policies and reforms that could form the basis for the completion of the 6th review under the EFF,” Teresa Dabán Sanchez, the outgoing resident representative of the IMF, told The Express Tribune.
This is the second time Pakistan and the IMF could not find “basis for the completion of the 6th review.,” The first attempt was made in June.