The Finance Ministry began talks with a delegation of the International Monetary Fund from today (thursday) to finalise the second review of the stand-by agreement.

The IMF team arrived in Pakistan on Wednesday night and met Pakistan’s delegation, led by Minister Muhammad Aurangzeb, at the Q-Block for an ‘opening session’.

The negotiations are expected to last from March 14 to March 18, but could be extended to March 21.

If Pakistan completes the second review, IMF will release the third and final tranche worth $1.1 billion. The release of the amount will have to be approved by the Fund’s executive board.

According to the finance ministry, all structural benchmarks, qualitative performance criteria, and indicative targets for the successful completion of the review have already been met.

Aurangzeb has already indicated that the country will look towards the IMF for an Extended Fund Facility after the SBA and talks could begin on the matter soon.

The Fund has already expressed its optimisim about negotiating with a new government in the country.

“We look forward to engaging with the new government to complete the second review under the current stand-by arrangement and, should the government request, support the formulation of a new medium-term economic program,” IMF spokesperson Julie Kozack said recently.

She added that during the tenure of the interim government, the authorities had “maintained economic stability”.

“This has been done through strict adherence to fiscal targets while also protecting the social safety net. It has been done by maintaining a tight monetary policy stance to control inflation and to continue to build up foreign exchange reserves,” she said.