NEW DELHI: Pakistan has met the International Monetary Fund’s benchmarks for maintaining the status quo in the energy sector, which could potentially pave the way for the disbursement of the next loan tranche of $1.2 billion, officials said.
Ministry of Energy officials confirmed that they have successfully achieved the targets set for containing the flow of circular debt below Pakistani Rs 385 billion, timely increase in electricity prices, and reducing line losses, The Express Tribune newspaper reported.
The rise was Pakistani Rs 378 billion, which was somewhat better than the IMF requirement, the paper said.
Despite a slight increase in circular debt, Pakistan remains committed to containing it at June 2023 level of Pakistani Rs 2.31 trillion by the end of this fiscal year, the paper added.
The targets would be reviewed by the IMF during the second negotiations of the $3 billion bailout package. The review mission is expected to visit Islamabad in the coming weeks, once the government formation process is completed.
Pakistan is currently implementing a short-term $3 billion agreement, with two tranches already being disbursed to the country. The final tranche of $1.2 billion is expected to be received by the end of March or early April.
Refraining from commenting on the jailed PM Imran Khan’s demand that the IMF should conduct an “audit” of the election results, a top official expressed its willingness to work with the new government.
The new government will need to engage in fresh talks with the IMF to secure a new loan. The IMF’s review mission was initially planned for February but was postponed due to the general elections.