IMF talks likely to clear way for $1.2bn disbursement

Dawn reported that talks with a visiting IMF staff mission should end favourably this week, clearing the path for about $1.2 billion under two programmes: the $7 billion Extended Fund Facility and the $1.4 billion Resilience and Sustainability Facility. Informed sources added that both teams were working on the Memorandum of Economic and Fiscal Policies (MEFP), having covered the core parameters of the biannual review. The mission, led by Iva Petrova, is set to wrap up its stay within a couple of days, and the Fund has raised no fresh demands beyond adjustments for past slippages.

The LNG import plan for December to February remains unfinished amid supply constraints linked to the US-Iran conflict. Gas companies and the petroleum division asked for at least 22 cargoes, but the energy task force led by Lt Gen Zafar Iqbal offered no more than 10 to 12 cargoes on a best-effort basis. Given roughly $100m per spot cargo, the plan needs prime ministerial approval and State Bank and Finance Ministry consent.

Gas-sector debt has reached Rs3.6 trillion and keeps rising, with around Rs1.8 trillion in principal payables. Both sides agreed to speed up targeted gas subsidies via the social protection programme, with BISP-based power subsidies moving into implementation from January next year. The IMF is also pressing for greater transparency in the Inland Freight Equalisation Margin, which supports uniform petroleum pricing nationwide.