ISLAMABAD: The International Monetary Fund’s Executive Board is set to review Pakistan’s progress on January 11 next year, aiming for approval that would unlock $700 million under the standby arrangement (SBA).
The IMF’s spokesperson issued a statement on Friday about the board’s upcoming meeting on January 11, 2024.
Pakistan had previously reached a staff-level agreement with the IMF under the $3 billion SBA and now awaits the board’s approval to access a second tranche.
However, a recent report in The News indicated that Pakistan’s first review for approval wasn’t on the agenda for the IMF’s Executive Board meeting scheduled from December 1 to December 15. The delay was attributed to the IMF team’s efforts in confirming support from various creditors, amounting to $24.9 billion needed for the current fiscal year.
This delay has prompted discussions among policymakers, suggesting that the IMF may initiate talks for the second review after the general elections and the installation of the elected government. The initial plan for discussions on the second review was slated for February 3, 2024, but potential elections on February 8 might push these talks to late February or early March 2024. The ongoing SBA program is set to expire on April 14, 2024.
IMF Executive Director Bahador Bijani recently acknowledged an overall economic improvement in Pakistan, commending the authorities for their efforts.
His comments were made during an event hosted by Pakistan’s ambassador to the US, where representatives from various international financial institutions were present.
Nathan Porter, IMF Mission Chief to Pakistan, also expressed contentment with the recently concluded staff-level agreement, affirming that the government’s actions and policies showcased a commitment to stabilizing the country.
Pakistan, currently grappling with Asia’s fastest inflation rate and facing around $1 billion in dollar-denominated debt due next year, is also gearing up for scheduled elections in February.
