IMF board likely to approve $700mln loan for Pakistan today

The Executive Board of the International Monetary Fund (IMF) is poised to give the green light to the initial review of Pakistan's $3 billion Stand-By Arrangement (SBA) on Thursday.

The existing IMF program, set to conclude in the second week of April 2024, still has approximately $1.8 billion left to be disbursed, with the initial tranche of $1.2 billion released in July.

Upon the board's approval, Pakistan is anticipated to receive an installment of around $700 million. Officials from the finance ministry affirmed that Pakistan has successfully met all the stipulated targets set by the IMF and is optimistic about achieving the desired outcomes. They highlighted the strict adherence to economic reforms in the country.

Read More: https://economy.pk/imfs-executive-board-to-consider-pakistans-case-for-700m-tranche-on-jan-11/

The presentation of the first review under the $3 billion short-term loan program is on the agenda for the board, with a decision on the approval of the second tranche for Pakistan expected today.

It is noteworthy that on November 16th of the previous year, Pakistan and the IMF reached a staff-level agreement on the initial review within the framework of Pakistan's SBA.

This agreement underscores Pakistan's commitment to advancing fiscal consolidation, expediting reforms to reduce costs in the energy sector, completing the transition to a market-determined exchange rate, and undertaking reforms in state-owned enterprises and governance to attract investments and bolster job creation. Simultaneously, the country remains focused on enhancing social assistance programs.