ISLAMABAD, Pakistan – The International Monetary Fund (IMF) prefers to negotiate the release of a $1.1 billion tranche with Pakistan’s new government rather than the caretaker administration, sources said.
Discussions for the third and final payout under the $3 billion bailout are expected to begin in early March once federal and provincial governments are constituted.
Per finance ministry officials, the caretaker government has successfully met IMF objectives, setting a positive precedent for the incoming leadership.
If the interim administration performs well, talks with the next government will be smoother, they added.
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The IMF program expires in April and the tranche release is considered critical to avoid default on foreign debt obligations.
Experts say the IMF wants to engage with Pakistan’s long-term economic managers to ensure reforms stay on track before approving the payout.
The deadline adds pressure on political parties to swiftly form governments and re-engage the IMF to unlock the financing.
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