IMF to discuss Pakistan on Jan 11, approval for $700mn expected

Pakistan is expected to receive a second tranche of $700 million under the $3 billion stand-by arrangement (SBA) from the International Monetary Fund (IMF) after the approval from the global lender’s Executive Board in a meeting on January 11, 2024.

The IMF has updated the calendar of board meetings on its website and the next three meetings are scheduled for January 8, 10, and 11. Pakistan is included on the board's agenda for the January 11 meeting, which was earlier expected to take place in mid-December. 

The delay has raised some doubts about the fate of the loan programme, which is due to end in April 2024.

Pakistan received $1.2 billion as the first tranche of the loan in July 2023, after signing a stand-by arrangement (SBA) in June. The SBA aims to support Pakistan’s falling foreign reserves, strengthen its fiscal and monetary policies, and address its structural challenges.

Earlier, Pakistan and the IMF reached a staff-level agreement on the first review of the SBA in November 2023, subject to the approval of the IMF Executive Board. The agreement was based on the satisfactory implementation of the prior actions and structural benchmarks agreed upon by both sides.

The IMF has praised Pakistan’s efforts to contain the fiscal deficit, increase tax revenues, enhance social spending, and improve the autonomy of the State Bank of Pakistan. However, it has also urged Pakistan to continue its reforms to boost growth, create jobs, and reduce poverty.