Pakistan is “very close” to reaching a deal with the International Monetary Fund to unlock at least $1.1 billion in funding and an announcement could come within 24 hours, Reuters reported, citing an interview with Finance Minister Ishaq Dar.
(Bloomberg) — Pakistan is “very close” to reaching a deal with the International Monetary Fund to unlock at least $1.1 billion in funding and an announcement could come within 24 hours, Reuters reported, citing an interview with Finance Minister Ishaq Dar.
The terms of the agreement have been finalized and a staff-level agreement is expected soon, Reuters reported, citing the interview with Dar conducted late on Thursday.
Pakistan and the IMF are also in discussions for a standby agreement that could release the rest of the $2.5 billion still pending under the IMF program after it expires on Saturday, the report said, citing an unidentified person familiar with the talks.
Pakistan dollar bonds due 2031 were little changed on Friday after rising in the past eight days, trading at about 42 cents on the dollar.
Pakistan has stepped up efforts to meet IMF demands in recent days, including raising taxes, cutting spending and increasing its key interest rate to a record high of 22%. The IMF loans are crucial in helping the South Asian nation manage $23 billion of external debt payments for the fiscal year starting July, more than six times its foreign-exchange reserves.
–With assistance from Nicholas Reynolds.
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