According to sources, discussions have so far progressed positively, while the Ministry of Finance has expressed optimism about reaching a successful outcome.
The IMF delegation is scheduled to hold meetings with the Ministry of Finance, Petroleum Division and Power Division. The delegation will be briefed on the auto policy, fuel subsidies and the deregulation of wheat and sugar, as well as gas tariffs and circular debt.
If an agreement is reached, Pakistan and the IMF are expected to sign a staff-level agreement. The programme reviews would then be presented to the IMF Executive Board, whose approval would pave the way for the release of the next instalments.
Officials said negotiations are being held simultaneously for reviews under the Extended Fund Facility (EFF) and the climate financing programme. Successful completion of both reviews would provide Pakistan with around $1.2 billion in additional funding.
The EFF talks cover the fourth review of the $7 billion programme, while discussions are also underway for the third review under the $1.4 billion climate financing programme.
Pakistan is expected to receive the fifth EFF instalment upon successful completion of the review, along with funds under the climate financing programme.
According to officials, Pakistan has so far received around $4.6 billion from the IMF under the two programmes. The country is currently participating in both the $7 billion EFF and the $1.4 billion climate financing programme.