ISLAMABAD: The International Monetary Fund (IMF) has sent the draft of a Memorandum of Economic and Financial Policies (MEFP) to Pakistani authorities – a key step as both sides move to reach an agreement.

Finance Minister Miftah Ismail confirmed that the Government of Pakistan has received a MEFP from the IMF for combined 7th and 8th reviews of the Extended Fund Facility.

Early this morning, the Government of Pakistan has received an MEFP from the IMF for combined 7th and 8th reviews.

— Miftah Ismail (@MiftahIsmail) June 28, 2022

The government wants to conclude an agreement with the international lender for the revival of the $6 billion programme before the approval of the federal budget for the upcoming fiscal year 2022-23.

The final round of talks will be held after the budget is approved from parliament. Finance Minister Miftah Ismail and State Bank of Pakistan governor will sign the contract on Pakistan’s behalf.

On Sunday, the finance ministry stated that the IMF will hand over the economic and financial policy for the renewed deal, providing an economic relief package to Pakistan.

“The Pak-IMF deal providing Pakistan with the $1 billion loans will be sealed by tomorrow as IMF plans to hand over Pakistan the economic and financial policy,” the statement said.

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Finance Minister Miftah Ismail told the National Assembly (NA) that the restoration of the IMF programme is expected despite the negative sentiments expressed by financial quarters.

He said international financial institutions are wary of dealing with Pakistan keeping in view the erratic policies by the previous governments in managing the economy.

Prime Minister Shehbaz Sharif had asserted that the terms with the IMF had been finalised and the deal would close soon except any other conditions set by the global lender.

Pakistan is also seeking an increase of $2 billion in the IMF programme and wants its tenure to be extended by a year till 2024.

The government revised its budgetary targets by reversing purposed relief for the salaried individuals and imposing a super tax on 13 industries.