IMF Delays Final Tranche Negotiations Until New Government Forms

Negotiations to secure the third and final tranche of approximately $1.1 billion from the International Monetary Fund(IMF) are slated to commence only after the establishment of federal and provincial governments, a development expected by the end of this month or early next month.

The IMF expresses no interest in engaging with the caretaker government on this matter. Instead, the lender prefers to await the formation of the newly elected government before initiating talks.

Finance Ministry sources emphasized that the caretaker government has successfully met all the targets set by the IMF, establishing a promising precedent for the upcoming government. They believe that the caretaker government’s performance will pave the way for smoother talks for the new government.

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Sources anticipate that discussions with the IMF will resume either later this month or in early March. The upcoming visit of the IMF mission is considered crucial to finalize the $3 billion bailout, set to expire in April, and prevent default on foreign debt payments.