ISLAMABAD: Formal negotiations between the government and a visiting International Monetary Fund (IMF) staff mission are set to begin today (Monday) for the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).
According to official sources, the IMF mission, led by Iva Petrova, will remain in Pakistan for nearly two weeks, until the first week of October, to assess progress under both programmes.
Pakistan is currently implementing a 37-month IMF programme focused on fiscal discipline, structural reforms and measures aimed at strengthening long-term economic growth.
Successful completion of the reviews could pave the way for Pakistan to receive approximately $1 billion (SDR 760 million) under the EFF and another $200 million under the RSF. The combined $1.2 billion disbursement is expected by the end of November or early December.
Government Denies Buying Aircraft for Privatised PIA
Meanwhile, Adviser to the Finance Minister Khurram Schehzad has clarified that the government is not purchasing aircraft for Pakistan International Airlines (PIA), which was privatised through an auction last December.
Responding to claims circulating on social media that a minister was arranging sovereign-linked financing for new aircraft, Schehzad said the government had neither announced plans to purchase aircraft for the privatised airline nor provided a sovereign guarantee for a taxpayer-funded loan.
The clarification followed a recent meeting between Finance Minister Muhammad Aurangzeb and US Export-Import Bank (US Exim) Chairman John Jovanovich on the sidelines of the 81st session of the United Nations General Assembly in New York.
According to the Finance Ministry, the meeting covered the Reko Diq mining project as well as potential financing options for aircraft procurement by PIA.
The finance minister reportedly discussed PIA’s interest in Boeing 787 Dreamliner aircraft and sought support for a financing package covering aircraft and engines.
Schehzad, however, noted that US Exim’s mandate is to support US exports and employment. Since Boeing aircraft are US exports, the bank can provide financing to foreign buyers through established export-credit structures.
He further explained that US Exim’s framework includes asset-backed aircraft financing, under which financing can be secured against the aircraft itself, with credit assessment based on the airline or lessee and, where applicable, a guarantor. Therefore, a sovereign guarantee is not automatically required.
According to Schehzad, the finance minister’s discussions with US Exim extended beyond PIA and included potential financing opportunities in aviation, refinery upgrades and the Reko Diq mining project, as part of broader Pakistan-US economic engagement.
