The International Monetary Fund has stated that Pakistan will receive the $1.17 billion tranche in three to six weeks, after the two parties reached a staff-level agreement earlier this week.
In a press briefing on Thursday, Gerry Rice of the IMF Communication Department stated that the IMF had reached an agreement with Pakistan on a combined seventh and eighth review of the program, which would result in the disbursement of around 1.17 million to Pakistan.
Mr. Rice has stated that the tranche would bring the total disbursements, from the IMF to Pakistan under the ongoing programme, to approximately $4.2 billion.
He continued by expressing his hope that this will help stabilize the economy, expand the social safety net, accelerate structural reforms, and help stabilize the macroeconomic situation in Pakistan.
Tentative timelines for the disbursement of funds were responded to by a spokesperson, who said that a final meeting could be held within three to six weeks. They added that this is roughly the time frame between when a staff-level agreement is made and when a final agreement, which comes from the board, is made.
The IMF has announced a staff-level agreement to extend Pakistan’s bailout package and increase its size to $7 billion, averting the risk of default.
The international community continued to apply pressure to Pakistan to urge it to remain on course with the IMF talks.
Background discussions with diplomatic channels revealed that the international community supported the IMF and did not provide any chances for the government to walk away from the talks by extending any kind of cash assistance to Pakistan.
The global lender stated that Islamabad should be prepared to take any additional measures, as the IMF statement revealed that the primary budget surplus target has been revised to 0.4% of the GDP, rather than the originally set 0.2%.