ISLAMABAD: Significant progress has been made in the negotiations between Pakistan and the IMF on the subject of the Staff SETA Agreement, under which the IMF and Pakistan have agreed to increase external financing to $6 billion instead of $7 billion this year.
Based on these developments, the finance ministry once again expressed hope for a staff agreement with the IMF in the next two days.
According to sources, there has been progress in relations between the Ministry of Finance and the Ministry of Foreign Affairs with the United States and other countries. The foreign and finance ministers have asked the IMF for help from friendly countries on strict terms.
Sources say that the Minister of Finance also participated in the negotiations held yesterday, while it was agreed to make external financing 6 billion dollars instead of 7 billion dollars this year.
There was also talk of bringing $2 billion from China and soon $800 million from China was confirmed.
Sources said Bank Negara and IMF officials have discussed the revised MEFP, while the Ministry of Finance and the IMF will prepare a revised MEFP in the next two days. The new MEFP will likely include a revolving debt reduction schedule.