ISLAMABAD: The Pakistani government has assured the International Monetary Fund (IMF) that it will accelerate the privatization program, sources from the finance ministry said.

They indicated that the privatization of Pakistan International Airlines (PIA) is progressing according to schedule, with efforts underway to finalize the process promptly.

Additionally, the federal government has devised a plan to privatize power-sharing companies, along with other financially struggling state-owned enterprises such as First Women Bank, State Life Insurance, and Pakistan Engineering Company.

Recent reports suggest that Pakistan is poised to sign a staff-level agreement with the IMF in the upcoming week. This agreement will pave the way for Pakistan to receive the final installment of $1.1 billion under the SBA Agreement, as per the sources. Furthermore, Pakistani officials have pledged to the IMF during negotiations to increase electricity tariffs starting July 1st, while also implementing fuel adjustments on consumers’ bills for cost recovery purposes.

Earlier, sources revealed that the Pakistani government had rejected the IMF’s proposal to revisit the National Finance Commission (NFC) Award, citing a shortage of federal funds.

The IMF had urged Islamabad to reconsider the NFC Award with provincial authorities during the second review talks under the $3 billion loan program. Currently, an IMF delegation is in Pakistan for the second review under the SBA loan program.

It’s worth noting that Pakistan secured a $3 billion IMF stand-by arrangement last summer. However, the country continues to grapple with significant challenges such as record inflation, currency devaluation, and diminishing foreign reserves.