Muzzammil Aslam, a spokesman at Pakistan's finance ministry, also confirmed the latest development, saying the staff-level agreement was reached between Pakistan and IMF after 45 days of discussion.
In April 2020, the IMF released $1.4 billion to Pakistan, helping it handle an economic crisis amid a surge in fatalities from the coronavirus. At least 28,663 Pakistanis have died from COVID-19 since last year, while about 1.2 million tested positive from the new virus.
Analysts say the fund wants Pakistan to further reduce the budget deficit, increase tariffs of electricity and petrol, as well as curb money laundering and corruption. The government in recent weeks complied with most of the conditions of IMF, but doing so made Prime Minister Imran Khan highly unpopular among people as inflation and the price of essential food soared.
In its statement Monday, the IMF also praised some measures taken by Pakistan government, saying the country's new moves could result in 4% growth this year and 4.5% the fiscal year after that.
Officials say the delay in agreement between Pakistan and the IMF was due to uneasy relations between Pakistan and the United States. U.S. President Joe Biden has avoided a call to Khan since he came into power. Khan this year publicly refused to provide bases to Washington for operations in Afghanistan.
The U.S., which exerts major influence over the IMF, has said the fund should not finance the tens of billions of dollars in loans that Pakistan has taken from China as part of Beijing’s worldwide Belt and Road Initiative.