An International Monetary Fund (IMF) delegation will also be visiting next month to start crucial talks with Pakistan. The meetings are meant to drum up support for the next tranche of funds, $1.2 billion, under the country’s current financial assistance measures.

The upcoming discussions will mainly be regarding the upcoming release of the $7 billion Extended Fund Facility (EFF). In addition, progress of the country will be assessed under the climate-responsive Resilience and Sustainability Facility (RSF).

Relevant ministries, such as the Ministry of Finance, have been asked to come up with detailed progress reports for the implementation of the new federal budget to ensure readiness. The Government of Pakistan is keen to brief the visiting mission on its structural reform targets, in an effort to illustrate strictness of adherence to current commitments under the program.

One key area of negotiations will be the current structural and institutional reforms in the country. The IMF delegation will be well informed on the ongoing work of the Privatisation Commission as well as detailed plans for the implementation of key reforms in the energy sector.

In these discussions, Pakistani authorities will have to outline specific measures to reverse the trend of building up circular debt in both the power and gas industries. This debt has been a constant and serious problem for the country’s economy as a whole.

Last but not least, a detailed analysis of major macroeconomic indicators will be covered at the meetings. Authorities will provide up to date information on changes in inflation and the decision of the State Bank of Pakistan on the policy interest rate. The team will also examine the overall impact of the nation’s improving foreign exchange reserves as part of the overall Pakistan’s economic performance assessment.