IMF team
ISLAMABAD: A team of International Monetary Fund (IMF) is arriving in Pakistan on November 2, 2023, to assess the country’s performance within the current program.
Pakistan and IMF team will engage in discussions regarding the release of the next installment of the loan.
The forthcoming tranche is anticipated to amount to approximately $710 million. In July, the initial tranche, valued at $1.2 billion, was disbursed, accounting for a portion of the total agreed-upon amount of $3 billion.
Nathan Porter will head the IMF team, tasked with evaluating Pakistan’s actions during the July-September period.
One of the pivotal points under consideration pertains to the government’s challenges in securing external financing, as some expected loans have not yet materialized.
Recent discussions with the IMF have revolved around topics such as the Special Investment Facilitation Council, the timing of upcoming elections, and the interim government’s mandate.
The government is expressing confidence in its ability to meet the IMF’s scrutiny, particularly with regard to the exchange rate.
The value of the Pakistani rupee has seen an uptick in recent weeks following government measures to curb smuggling and hoarding.
The $3 billion Staff-Level Agreement was established with the IMF after protracted negotiations, during which Pakistan chose to abandon its previous $6.5 billion program without completing it.
To recall, in July this year, Pakistan secured a 9-month SBA with the IMF, valued at a substantial $3bn. This agreement came at a time when the cash-strapped nation was on the brink of default.Â
Right after this agreement, IMF immediately released $1.2bn to help shore up reserves. It is important to mention that the upcoming review, if remains successful will pave the way for a $700 million instalment.
