<p>The International Monetary Fund (IMF) on Thursday said it had reached a staff-level agreement with Pakistan that would pave the way for the disbursement of $1.17 billion, if approved by the IMF board, and was considering adding funds to the program.</p>.<p>In a statement, the IMF said its staff had reached an agreement on policies under a review of its Extended Fund Facility (EFF) program that could bring total disbursements under the program to about $4.2 billion, if approved.</p>.<p>In order to meet higher financing needs, the IMF board will also consider an extension of the EFF until the end of June 2023, and an addition of nearly $1 billion that would bring total access under the program to about $7 billion, it said.</p>.<p>"Pakistan is at a challenging economic juncture," Nathan Porter, who headed the IMF team, said in a statement, citing the difficult external environment and domestic policies that fueled demand to unsustainable levels.</p>.<p>"The resultant economic overheating led to large fiscal and external deficits in FY22, contributed to rising inflation, and eroded reserve buffers," he added.</p>.<p>Agreed policy priorities included steadfast implementation of the fiscal 2023 budget, which aimed to reduce the government's large borrowing needs and boost revenues by targeting higher-income taxpayers while protecting development spending, Porter said.</p>.<p>Pakistan also needed to catch up on power sector reforms, engage in proactive monetary policy to guide inflation to more moderate levels and work to reduce poverty.</p>.<p>The country's finance minister told broadcaster Geo earlier that the talks with the IMF had concluded, and an announcement was expected soon.</p>.<p>Pakistan entered the IMF program in 2019, but only half the funds have been disbursed to date as Islamabad has struggled to keep on track to meet targets.</p>
<p>The International Monetary Fund (IMF) on Thursday said it had reached a staff-level agreement with Pakistan that would pave the way for the disbursement of $1.17 billion, if approved by the IMF board, and was considering adding funds to the program.</p>.<p>In a statement, the IMF said its staff had reached an agreement on policies under a review of its Extended Fund Facility (EFF) program that could bring total disbursements under the program to about $4.2 billion, if approved.</p>.<p>In order to meet higher financing needs, the IMF board will also consider an extension of the EFF until the end of June 2023, and an addition of nearly $1 billion that would bring total access under the program to about $7 billion, it said.</p>.<p>"Pakistan is at a challenging economic juncture," Nathan Porter, who headed the IMF team, said in a statement, citing the difficult external environment and domestic policies that fueled demand to unsustainable levels.</p>.<p>"The resultant economic overheating led to large fiscal and external deficits in FY22, contributed to rising inflation, and eroded reserve buffers," he added.</p>.<p>Agreed policy priorities included steadfast implementation of the fiscal 2023 budget, which aimed to reduce the government's large borrowing needs and boost revenues by targeting higher-income taxpayers while protecting development spending, Porter said.</p>.<p>Pakistan also needed to catch up on power sector reforms, engage in proactive monetary policy to guide inflation to more moderate levels and work to reduce poverty.</p>.<p>The country's finance minister told broadcaster Geo earlier that the talks with the IMF had concluded, and an announcement was expected soon.</p>.<p>Pakistan entered the IMF program in 2019, but only half the funds have been disbursed to date as Islamabad has struggled to keep on track to meet targets.</p>