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IMF Pakistan– Pakistan is poised to secure the second tranche of $700 million within the $3 billion stand-by arrangement (SBA) from the International Monetary Fund (IMF) following approval from the global lender’s Executive Board in a meeting scheduled for January 11, 2024.
The IMF’s website has been updated with the calendar of board meetings, listing January 8, 10, and 11 for the next sessions. Pakistan is notably on the agenda for the January 11 meeting, originally slated for mid-December.
The delay in scheduling has sparked concerns about the fate of the loan program, set to conclude in April 2024.
Having received the first tranche of $1.2 billion in July 2023, Pakistan signed the stand-by arrangement (SBA) in June. The SBA’s objectives include bolstering Pakistan’s dwindling foreign reserves, fortifying fiscal and monetary policies, and addressing structural challenges.
In November 2023, Pakistan and the IMF reached a staff-level agreement on the first review of the SBA, contingent on approval from the IMF Executive Board. The agreement hinged on satisfactory implementation of prior actions and structural benchmarks mutually agreed upon.
Read Also: IMF Denies Reports of Tax Hike Requests in Pakistan Amid Economic Recovery Measures
The IMF commended Pakistan’s efforts in containing the fiscal deficit, elevating tax revenues, increasing social spending, and enhancing the autonomy of the State Bank of Pakistan. Despite the acknowledgment, the IMF has urged Pakistan to persist in its reforms aimed at stimulating growth, job creation, and poverty reduction.