The Executive Board of the International Monetary Fund (IMF) is slated to convene on April 29 to finalize its last review of Pakistan’s $3 billion Stand-By Arrangement (SBA).
Earlier this week, the IMF released a schedule of the Executive Board’s meetings, with Nigeria’s program set for review on April 29, followed by meetings on May 1 to assess IMF programs with Kiribati and Montenegro. Notably, Pakistan was absent from this list, leading to speculation in Pakistan about its exclusion from the board’s agenda and concerns about renegotiating the release of the final tranche.
However, a former World Bank official dismissed these speculations as baseless, emphasizing that the IMF operates transparently and any decision to delay a program would be openly communicated. He clarified that scheduling complications might lead to meeting delays but would not typically impact a program after reaching a Staff-Level Agreement (SLA).
In March, IMF staff and Pakistani authorities reached an SLA for the second and final review, which was forwarded to the board for approval. Upon approval, Pakistan would gain access to SDR 828 million (approximately $1.1 billion).
Meanwhile, Finance Minister Muhammad Aurangzeb expressed optimism about Pakistan’s economic prospects in an interview with The National, stating that Pakistan is on track to secure a new, potentially larger, IMF loan. He highlighted positive shifts in macroeconomic indicators, including stabilizing currency and decreasing inflation.
Regarding China-Pakistan Economic Corridor (CPEC) projects, Aurangzeb acknowledged delays and emphasized the need to expedite revenue-generating aspects, particularly in CPEC’s second phase. He also underscored the importance of remittances to Pakistan’s economy, noting their expected increase to about $29 billion this fiscal year.
Aurangzeb further engaged with UAE investors during meetings in Dubai, discussing ways to boost investment activity between the UAE and Pakistan across various sectors, including IT, renewable energy, transport, logistics, infrastructure, and real estate development. He highlighted Pakistan’s competitive advantages and the role of the Special Investment Facilitation Council in supporting investors throughout their journey.
