ISLAMABAD: The top International Monetary Fund (IMF) official in Islamabad confirmed on Tuesday Pakistan had met the final precondition for the seventh and eighth review under a $6 billion loan program by increasing the petroleum development levy (PDL).

Pakistan has been striving to revive the loan facility which was stalled earlier this year after the previous administration of ousted prime minister Imran Khan went against its terms and conditions by subsidizing fuel and energy prices in the country.

Faced with a rising current account deficit and depleting forex reserves, Pakistan desperately needs external finances from the global lender since it will also unlock other sources of international finances.

“With the increase in PDL on July 31, the last prior action for the combined 7th and 8th review has been met,” said the IMF’s resident chief in Pakistan, Esther Perez Ruiz, in a brief statement. “The Board meeting is tentatively planned for late August once adequate financing assurances are confirmed.”

Pakistan has raised energy and fuel prices in recent months to implement stringent IMF reforms required to secure the next tranche of $1.2 billion under the loan program.

The country’s finance minister Miftah Ismail has also requested the international lending agency to expand the size of the loan program to $8 billion and increase its tenure to June 2023.

Last week, media reported Pakistan’s army chief General Qamar Javed Bajwa had asked the Biden administration to help secure an early release of the IMF money, as Pakistan’s national currency faced rapid depreciation against the greenback.

Prior to that, the country reached at a staff-level agreement with the IMF on July 13 for the continuation of the loan facility.