The IMF’s executive board is poised to convene on April 29 to deliberate on the approval of a $1.1 billion loan for Pakistan as part of its 9-month Stand-By Arrangement (SBA) with the IMF. Pakistani authorities and the IMF reached a staff-level agreement on the second and final review of the SBA in March, which was approved last year for $3 billion.
With an immediate disbursement of $1.1 billion, Pakistan received a second disbursement of $700 million in January, totaling $1.9 billion. Finance Minister Muhammad Aurangzeb aims to secure a Staff-Level Agreement on a larger loan program with the IMF by June-July 2024, outlining a strategy to avoid future IMF programs by seeking a new, larger, and longer 24th program.
The last loan tranche is anticipated to be disbursed next week, with further inflows expected in June, potentially boosting foreign exchange reserves to $10 billion. Despite ongoing discussions, Pakistan has yet to formally request a new program from the IMF.
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