Pakistan and the International Monetary Fund will continue discussions over another round of funding from a $7 billion bailout program aimed at restoring confidence in the country’s economy, amid questions on how the ongoing war in Iran may impact its eastern neighbor.
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The round of discussions on the third review of the so-called extended fund facility focused on fiscal policy and economic reforms under the program, according to a statement by the global lender.
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The IMF praised Pakistan’s leaders for “good progress in the implementation of their reform agenda,” however noted the cloud of uncertainty brought on by the nearby conflict, including on energy prices.
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“While considerable progress was made in the discussions, these will continue in the coming days, including to more fully assess the impact of recent global developments on Pakistan’s economy and the EFF-supported program,” Iva Petrova, who led the International Monetary Fund mission, said in a statement.
A staff-level agreement has yet to be announced, which is typically later approved by the IMF’s executive board, unlocking the next tranche of funding.
