Pakistan Meets IMF Energy Targets, Putting $1.2B Loan Tranche in Reach

• Pakistan met IMF benchmarks for energy sector to maintain status quo, potentially paving way for $1.2B loan tranche • Achieved targets for limiting circular debt below Rs 385B, timely electricity price hikes, and reducing line losses
• Circular debt rise was slightly better than IMF requirement, remaining committed to containing it • IMF to review targets during second negotiations of $3B bailout package. Review mission expected in coming weeks • New government will need to engage in fresh talks with IMF to secure a new loan