Photo: Collected
The International Monetary Fund (IMF) on Wednesday (20 March) reached an agreement to issue a new $1.1 billion tranche to Pakistan after the second review of the country's compliance with the stabilization program under the Stand-By Arrangement (SBA).
In July 2023, the IMF approved a 9-month SBA for Pakistan for $3 billion to support the authorities’ economic stabilization program, with immediate disbursement of $1.2 billion. In November, the IMF and Pakistani authorities reached a staff-level agreement on the first review for the SBA. In January, the IMF disbursed a tranche of $700 million, strengthening the foreign exchange reserves of the Pakistani central bank.
"The IMF team has reached a staff-level agreement with the Pakistani authorities on the second and final review of Pakistan’s stabilization program supported by the IMF’s US$3 billion ... This agreement is subject to approval by the IMF’s Executive Board, upon which the remaining access under the SBA, US$1.1 billion (SDR [Special Drawing Rights] 828 million), will become available," the head of the IMF team in Pakistan, Nathan Porter, was quoted as saying in a statement.
Porter said that "Pakistan’s economic and financial position has improved" after the first review due to "prudent policy management and the resumption of inflows from multilateral and bilateral partners." Despite that, economic "growth is expected to be modest this year" as "inflation remains well above target," he added.
Messenger/Mumu
