Islamabad, 29 April 2024, (GNP): Finance Ministry sources informed the media on Monday that Pakistan will present its argument for the release of the International Monetary Fund’s (IMF) last installment of $1.1 billion during the global lender’s executive board meeting, slated for today.
According to sources, the IMF delegation has already recommended the release of the installment. Additionally, it’s expected that the $1.1 billion tranche will be approved once the case is presented before the board.
“Pakistan is waiting to receive the third and final installment under the SBA agreement. While the country has already received $1.9 billion from the IMF under the agreement,” the sources said.
They also mentioned that Pakistan has adhered to the targets outlined in the agreement with the IMF.
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Furthermore, the sources indicated that the economic team will engage in discussions with the Washington-based lender regarding a new loan program in May.
The IMF delegation will arrive in Pakistan around mid-May for negotiations under the new loan programme as Pakistan is seeking a new long-term Extended Fund Facility (EFF) after a current $3 billion Stand-By Arrangement (SBA).
PM meets IMF chief
During the World Economic Forum Special Meeting in Riyadh, Prime Minister Shehbaz Sharif held discussions with IMF Managing Director Kristalina Georgieva regarding a potential new loan agreement on Sunday.
During his initial meeting with the IMF chief following his re-election, PM Shehbaz reiterated his administration’s dedication to revitalizing Pakistan’s economy, as per a statement released by the PM Office.
“Both sides also discussed Pakistan entering into another IMF programme to ensure that the gains made in the past year were consolidated and its economic growth trajectory remained positive,” the statement added.
PM Shehbaz expressed gratitude to IMF chief Georgieva for her assistance in securing the $3 billion SBA from the international lender last year, which is now reaching its conclusion.
According to the statement, the IMF chief commended PM Shehbaz’s leadership for successfully securing the SBA last year in a timely manner.
During the meeting, the prime minister conveyed that he had instructed his financial team, headed by Finance Minister Muhammad Aurangzeb, to implement structural reforms, uphold stringent fiscal discipline, and pursue prudent policies aimed at maintaining macroeconomic stability and fostering sustained economic growth.
The IMF MD provided her institution’s viewpoint on the current program to the premier, discussing aspects such as the review process.