Pakistan and the IMF are expected to reach a staff level agreement the next week to restart their stalled loan programme.

ISLAMABAD – As the nation of over 220 million people is on the verge of defaulting on its debt, Pakistan and the International Monetary Fund (IMF) have reached a consensus on a fiscal framework. This is a further step toward the disbursement of the stalled loan tranche.

The good news comes as the coalition government implements important proposals made by the global lender as it implements taxes to raise Rs170 billion.

The two sides are likely to reach a staff-level agreement before the end of this month with strict measures in place. On Thursday, it was reported that the US-based lender and Islamabad held virtual meetings and agreed on negotiations. Pakistan and the IMF are expected to reach a staff level agreement the next week to restart their stalled loan programme.

The recent development comes amid market uncertainty after a financial institution’s visiting mission to Pakistan ended without a staff-level agreement.

The country’s finance chief, Ishaq Dar, and a number of other members of the ruling alliance shared optimism about the prospects for things to progress.

A statement was also issued by Nathan Porter, the mission chief of the International Monetary Fund (IMF), confirming significant progress made during the policy measures talks. He also expressed appreciation to the authorities for the “constructive discussions.”