The International Monetary Fund (IMF) anticipates the release of Pakistan’s final tranche, approximately $1.1 billion (SDR 828 million), from the $3-billion Stand-By Arrangement (SBA) inked in June last year. Julie Kozack, IMF Communication Director, announced this during a recent media briefing, highlighting that the Executive Board meeting is slated for “late April.”
The disbursement is contingent upon the Board’s approval of the staff-level agreement reached between IMF staff and Pakistani authorities on March 19, marking the second and final review under the SBA. Kozack emphasized the recognition of Pakistan’s robust program implementation by the State Bank of Pakistan (SBP) and the caretaker government, along with the new government’s commitment to ongoing policy and reform endeavors for a sustainable recovery.
She also noted improvements in Pakistan’s economic and financial position since the completion of the first review, with growth and confidence on a recovery trajectory. Additionally, discussions on a successor IMF-supported program are anticipated, aiming to address Pakistan’s fiscal and external stability challenges and foster inclusive growth.
Meanwhile, Pakistan’s foreign exchange reserves saw a weekly increase of $19 million, reaching $8.04 billion as of March 29, although concerns persist due to the country’s import-dependency. Finance Minister Muhammad Aurangzeb has indicated plans for discussions on another IMF bailout during the upcoming Spring meetings of the World Bank Group and IMF scheduled for April 15-20, 2024, in Washington DC, where he is expected to lead Pakistan’s delegation.
