Pakistan and the International Monetary Fund have been conducting fiscal policy discussions under the review since last February, with the aim of making available $1.1 billion in troubled financing that was due to be disbursed in November in the part of a $6.5 billion program agreed in 2019.
Government measures pushed inflation to a record high of 36.4% in April.
The country desperately needs financing to avoid defaulting on its external obligations in light of a balance of payments crisis that has reduced its foreign exchange reserves to just four weeks of controlled imports.
“The IMF continues to work with the Pakistani authorities to complete the ninth review once the necessary funding becomes available and an agreement is reached,” mission chief Nathan Porter said in a statement to Reuters.
He stressed that the fund “will support the authorities in the implementation of policies in the coming period”.
He explained that this includes the technical work to prepare the budget for the financial year 2024, which should be approved by Parliament by the end of June.
The conditions include Pakistan providing confirmation that the balance of payments deficit is fully financed for the current fiscal year ending in June.
Pakistan has announced pledges of $3 billion to support funding from Saudi Arabia and the United Arab Emirates, but the money has yet to arrive.
China has also renewed or refinanced its loans to Pakistan.
The fund’s current program aims to disburse an additional $1.4 billion to Pakistan by the end of June.
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