A delegation of the International Monetary Fund arrived in Pakistan for talks on the next installment of the loan on Thursday.

Reports said that the IMF team consists of eight members and will stay in Pakistan for 15 days.

Pakistan is hopeful of receiving the next tranche under the Staff Level Agreement after the talks are completed. The second tranche will be worth $0.71 billion.

The government has taken various steps in the first quarter of the current financial year including raising gas and fuel prices to lower the circular debt.

In addition, foreign exchange reserves and current account deficit are also as per the IMF requirements. Pakistan also collected Rs66 billion more in taxes than the target agreed upon with the Fund.

However, sources said that IMF still has reservations over how Pakistan is managing the exchange rate and also needs assurances on securing external funding. The IMF is reportedly demanding that a circular issued in 2022 to control exports should be withdrawn.

The $3 billion Staff-Level Agreement was signed with the IMF after long talks that ended with Pakistan abandoning the previous $6.5 billion program without completing it.