The first tranche of $1.1 billion will be released as part of the loan program, providing much-needed relief to Pakistan which is on the verge of default.
WASHINGTON: (UrduPoint/Pakistan Point News-July 12nd, 2023) The International Monetary Fund (IMF) Executive board is scheduled to convene today (Wednesday) to evaluate the $3 billion stand-by arrangement with Pakistan.
The first tranche of $1.1 billion will be released as part of the loan program, providing much-needed relief to the South Asian economy, which is on the verge of default.
Pakistan successfully secured the $3 billion stand-by arrangement (SBA) from the IMF on Friday, offering a crucial lifeline to bolster its foreign exchange reserves. The staff-level agreement on the SBA is awaiting approval from the IMF Executive Board. The SBA serves as an emergency bailout package aimed at strengthening Pakistan's foreign exchange reserves.
The previous Extended Fund Facility expired on June 30, with the completion of the 9th, 10th, and 11th reviews still pending.
In recent developments, officials from the International Monetary Fund (IMF) engaged in meetings with the economic teams of the Pakistan People's Party (PPP) and the Pakistan Tehreek-e-Insaf (PTI), seeking assurance of their commitment to the "key objectives" outlined in the new $3 billion Standby Agreement with Pakistan.
During the meetings, the IMF officials held discussions with PPP's economic team, represented by Naveed Qamar and Saleem Mandiwala, to secure assurance regarding the bailout deal.
The leadership of the Pakistan Tehreek-e-Insaf (PTI) also expressed their support for the $3 billion standby agreement (SBA) reached between the IMF and the current Pakistani government. The agreement aims to maintain macroeconomic stability ahead of the general elections, and the PTI has welcomed this step.
The upcoming IMF Executive Board meeting holds significant importance in finalizing the release of funds under the stand-by arrangement, which will play a vital role in addressing Pakistan's economic challenges and ensuring stability.
