KARACHI: Pakistan and the International Monetary Fund (IMF) on Tuesday formally kicked off talks for the first review of a $7 billion bailout program that Islamabad secured last year, the finance ministry said in a statement. 

A Pakistani economic adviser told Arab News on Monday, requesting anonymity, that a nine-member mission led by Nathan Porter had landed in Pakistan to assess the country’s economic performance to determine the release of a $1.1 billion tranche over the following three weeks.

Pakistan has made little economic gains since securing the IMF bailout last summer. The country’s consumer price index (CPI) inflation rate, maintaining a downward trend on Monday, hit a more than 9-year low at 1.51 percent year-on-year in February.

“Pictures of kick-off meeting held today, ” the finance ministry wrote as caption of two photos shared with media on WhatsApp. The pictures showed Pakistani officials, led by Finance Minister Muhammad Aurangzeb, involved in discussions with an IMF delegation led by its Pakistan mission chief Nathan Porter. 

Pakistan’s finance ministry has so far not shared any details of the talks between the government and the IMF. However, local media has widely covered the delegation’s visit. 

Top Pakistani news channel, ARY News, reported that the IMF was demanding action against tax evasion in Pakistan’s real estate sector. 

“During the talks, the IMF pushed for action against those misdeclaring property values,” ARY reported on Monday, saying the government had assured the international lender it would activate the Real Estate Regulatory Authority.

“Strict penalties, including imprisonment and fines, will be imposed on individuals and agents who falsely declare property values … As per sources, failing to register could result in a fine of up to Rs500,000,” ARY added. 

Pakistan’s Dawn newspaper said the government “remains optimistic about a successful conclusion to the talks.”

“The performance review, in principle, is based on the first half of the current fiscal year — July 1 to Dec 31, 2024 — and while some shortcomings could be observed at that time, all those missing links have now been covered,” Dawn reported, quoting a Pakistani official.

The IMF team usually spends around two weeks reviewing fiscal reforms and policy.

Last week, a separate IMF team visited Pakistan to discuss around $1 billion in climate financing on top of the EFF. That disbursement will take place under the IMF’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar and Saudi Arabia’s Ambassador Nawaf bin Said-Al Malki expressed their resolve to strengthen existing ties between the two countries, particularly in trade and investment, state broadcaster reported this week amid Islamabad’s efforts to attract investment from Gulf countries in its priority sectors. 

Pakistan has pushed in recent months to strengthen trade and investment ties with friendly nations, particularly the Kingdom, which last year promised a $5 billion investment package that cash-strapped Islamabad desperately needs to shore up foreign reserves and fight a chronic balance of payment crisis.

Pakistani and Saudi businesses signed several agreements and memoranda of understanding (MoUs) in October 2024 worth $2.8 billion. Islamabad is also looking to attract Saudi investment in key sectors such as oil and gas, renewable energy, mining and minerals, infrastructure and others to keep its fragile $350 billion economy afloat.

“Saudi Ambassador Nawaf bin Said Al-Malki called on Deputy Prime Minister Ishaq Dar in Islamabad,” state broadcaster Radio Pakistan reported on Monday. “Both expressed their commitment to further strengthen the existing deep-rooted ties between the two countries, particularly in the areas of trade and investment.”

The state media said Malki conveyed Ramadan greetings for Dar and the people of Pakistan. The deputy prime minister wished the same to the Saudi leadership and the Kingdom’s people. 

Apart from strong trade and investment ties, Pakistan and Saudi Arabia also share deep cultural, defense and economic relations. The Kingdom is home to over two million Pakistanis and for years has remained the largest contributor to the country’s workers’ remittance inflows.

These remittances play a major role in supporting Pakistan’s external account, especially at a time when the country is recording small gains after a prolonged economic crisis that diminished its foreign exchange reserves and weakened its national currency.