ISLAMABAD According to a report published in The News on Tuesday, the International Monetary Fund (IMF) has stated that its Executive Board will take into account Pakistan’s request to complete the first review and release the second tranche, valued at $700 million, on January 11 in Washington.
Caretaker Minister for Finance Dr. Shamshad Akhtar and Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, have signed a Letter of Intent (LoI) committing them and the Lender to carrying out all agreed-upon procedures in order to obtain approval for the second tranche, valued at $700 million, under the $3 billion Standby Arrangement (SBA).
Pakistani officials reaffirmed that in order to achieve the program’s goals, the government would stop at nothing to maintain budgetary consolidation.
They committed to pursuing the exchange rate mechanism based on the market.
“Yes, the LoI was signed by Pakistani authorities and they were sent to the fund’s headquarters. Top official sources confirmed to The News here on Monday that the signed LoI has now been shared with the IMF Board of Directors (BoD), who will take into consideration Pakistan’s request to give their approval for the release of the second tranche worth $700 million within the next few days following the board’s meeting.
Following the US holidays for Christmas and New Year’s, the IMF released its board schedule, indicating that the fund’s board will convene on January 11 to discuss Pakistan’s request for the delivery of the second tranche under the SBA program.
Pakistan had been waiting for the board’s approval to receive a second tranche under the $3 billion SBA when it secured a staff-level agreement with the IMF in November 2023.
The current SBA program will end on April 14, 2024.
IMF Executive Director Bahador Bijani stated in December 2023 that the “Pakistani authorities have delivered,” pointing to a general improvement in the nation’s economic circumstances.
He had said these things at a dinner at Pakistan House in Washington, DC, organized by Pakistan’s ambassador to the US in honor of Pakistani friends from international financial institutions, such as the World Bank, IMF, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA).
“I believe Pakistan has a very bright future. Pakistan is not your average nation. It is among the most significant nations in the globe and the region. In an official release, the IMF executive director was cited as saying, “Pakistanis deserve much more.”
The recently concluded staff-level agreement had also been met with pleasure by Nathan Porter, the Chief of the IMF Mission to Pakistan. He had stated that the current government’s policies and actions demonstrated its determination to lead the nation toward stabilization.
Pakistan is suffering from the worst rate of inflation in Asia, has $1 billion in debt due this year in US dollars, and is set to have elections in February.
