ISLAMABAD: Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement Wednesday on the second and last review of the US $3 billion Stand-By Arrangement, clearing the way for the lender to deliver the final tranche.
“The IMF team has reached a staff-level agreement with the Pakistani authorities on the second and final review of Pakistan’s stabilisation program supported by the IMF’s US$3 billion (SDR2,250 million) SBA approved in January 2024,” said Nathan Porter, the head of the IMF team that met in Islamabad from March 14-19 to discuss the second review.
This arrangement is subject to confirmation by the IMF’s Executive Board, following which the remaining SBA access of US$1.1 billion (SDR 828 million) will become accessible.
The IMF mission chief stated that Pakistan’s “economic and financial position” had improved since the first assessment as a result of “prudent policy management and the resumption of inflows from multilateral and bilateral partners”.
However, Porter warned that economic growth will remain “modest” in the current fiscal year since inflation is above target.
He urged the adoption of existing policies and reforms to address Pakistan’s profound economic vulnerabilities in the face of continued challenges such as increased external and domestic finance demands and an uncertain external environment.
