Pakistan demands that the IMF extend and expand its credit programme.

Pakistan demands that the IMF extend and expand its credit programme.

The International Monetary Fund (IMF) will assess Pakistan's request for exemptions of performance criterion violations, as well as access extension, augmentation, and rephasing.

The combined seventh and eighth reviews will be place on August 29 under the Extended Arrangement under the Extended Fund Facility (EFF).

According to sources, all members of the IMF Executive Board have received the necessary copies of the staff report and letter of intent to complete the process. Pakistan will also give documentation concerning previous activities and priorities.

Waivers will very certainly be granted in relation to the primary deficit and monetary objectives, either in terms of net domestic assets (NDA) or net international reserves (NIR).

In July, the IMF struck a staff-level agreement (SLA) with Pakistani authorities to conclude the joint evaluations of the EFF-supported programme.

Subject to board approval, about $1,177 million (SDR 894 million) will be made available, increasing total programme payouts to almost $4.2 billion.

Furthermore, in order to strengthen programme execution, meet greater funding needs in FY23, and prompt additional financing, the IMF will consider extending the EFF until June 2023 and increasing access by SDR 720 million, totaling about $7 billion.

The IMF agreement is likely to include rigorous governance and corruption-control measures.

At the time of the staff level agreement, the policy included increasing governance. According to the IMF, the authorities want to implement a strong electronic asset deceleration system and conduct a thorough examination of anti-corruption agencies.