The International Monetary Fund (IMF) has not included Pakistan’s case in the agenda of its Executive Board meeting scheduled for December 1-15.
Pakistan is anticipating the approval of the first review to unlock a second tranche amounting to $700 million under the $3 billion Standby Arrangement (SBA) program.
The IMF’s exact schedule remains uncertain as the Fund’s team has been preoccupied with securing re-confirmation from all multilateral and bilateral creditors to meet the financing requirements of $24.9 billion for the current fiscal year.
This delay has sparked discussions among policymakers, suggesting that IMF negotiations on the second review might commence after the general elections and the takeover by the elected government.
Initially slated to begin discussions for the second review on February 3, 2024, the IMF program’s timeline may now be adjusted if elections are scheduled for February 8, 2024. In such a scenario, talks might be postponed to the last week of February or early March 2024. The ongoing SBA program is set to expire on April 14, 2024.
While the IMF has released its Executive Board calendar up to December 14, 2023, Pakistan has not been included in this issued calendar thus far.
On November 15, 2023, the IMF and Pakistan reached a Staff Level Agreement under the $3 billion SBA program. However, Islamabad’s request for considering the completion of the first review and releasing the second tranche of $700 million has not been finalized.
If the approval of the next tranche is not added to the agenda of the board meeting in the coming days, the release of the next tranche may be deferred to January 2024. Such a delay could have significant implications for the country’s ability to generate much-needed dollar inflows in the form of foreign loans during December 2023.
