Pakistan’s case for the release of the International Monetary Fund’s (IMF) final tranche of $1.1 billion is set to take center stage as the country’s representatives present their arguments in the global lender’s executive board meeting.
Sources disclosed that the IMF delegation has already recommended the release of the installment, with expectations high for approval once the case is presented before the board.
“Pakistan is eagerly awaiting the disbursement of the third and final installment under the Stand-By Arrangement (SBA) agreement. To date, the country has successfully received $1.9 billion from the IMF under the terms of this agreement,” the sources revealed.
Moreover, the sources emphasized Pakistan’s adherence to the agreed targets with the IMF, highlighting the country’s commitment to fulfilling its obligations within the framework of the SBA.
Looking forward, the economic team is gearing up for discussions with the Washington-based lender for a new loan program in May. The IMF delegation is anticipated to visit Pakistan in mid-May for negotiations under the new program, with Pakistan eyeing a new long-term Extended Fund Facility (EFF) following the conclusion of the current $3 billion SBA.
Prime Minister Engages IMF Chief in Talks for New Loan Agreement
During the World Economic Forum Special Meeting in Riyadh, Prime Minister Shehbaz Sharif seized the opportunity to discuss a new loan agreement with IMF Managing Director Kristalina Georgieva on Sunday.
In their first meeting since his re-election, Prime Minister Shehbaz reaffirmed his government’s dedication to steering Pakistan’s economy towards stability and growth, according to a statement issued by the PM Office.
The discussions centered around Pakistan’s interest in entering into another IMF program to solidify the progress achieved in the past year and to sustain positive economic momentum, the statement further elaborated.
Expressing gratitude, Prime Minister Shehbaz thanked IMF Chief Georgieva for her instrumental support in securing the $3 billion Stand-By Arrangement (SBA) from the international lender last year, which is now approaching completion.
In turn, IMF Chief Georgieva commended Prime Minister Shehbaz’s leadership for the timely acquisition of the SBA last year, as per the statement.
Throughout the meeting, the prime minister underscored his directive to his financial team, led by Finance Minister Muhammad Aurangzeb, to implement structural reforms, enforce fiscal discipline, and pursue prudent policies aimed at ensuring macroeconomic stability and sustained economic growth.
The IMF Managing Director also shared insights into the ongoing program with the premier, shedding light on the review process and future prospects.
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