Pakistan has received the draft Memorandum of Economic and Financial Policies (MEFP) from the International Monetary Fund (IMF), a pivotal step toward finalizing the staff-level agreement under the $7 billion Extended Fund Facility (EFF). Finance Minister Ishaq Dar confirmed the receipt of the MEFP draft, stating that it was received at 9 am and that the government is expected to secure $1.2 billion upon the completion of the ninth review of the EFF.

The MEFP outlines the specific policy measures and structural reforms that Pakistan commits to implementing to meet the IMF’s requirements. Following the receipt of the draft, the government’s economic team will review and analyze the proposed policies. Subsequently, discussions with IMF officials will be held to finalize the details, leading to a staff-level agreement. This agreement will then be presented to the IMF’s Executive Board for approval.

The timely finalization of the staff-level agreement is crucial for Pakistan, as it would facilitate the disbursement of funds needed to bolster the country’s foreign exchange reserves and support economic stability. The government has already indicated plans to introduce additional taxation measures amounting to Rs170 billion through a mini-budget to align with the IMF’s conditions.

In summary, the receipt of the MEFP draft signifies progress in Pakistan’s ongoing negotiations with the IMF. The government’s forthcoming actions, including policy implementations and legislative measures, will be instrumental in securing the next tranche of funding under the EFF.