The International Monetary Fund (IMF) announced that its Executive Board is anticipated to convene in “late April,” marking the final stage for Pakistan to receive approximately $1.1 billion as the last installment of the $3 billion Stand-By Arrangement (SBA) established in June of the previous year.
Julie Kozack, the IMF Communication Director, shared this information during a media briefing, highlighting that on March 19, a staff-level agreement was reached between IMF staff and Pakistani authorities concerning the second and final review under Pakistan’s SBA.
This agreement is contingent upon approval by the IMF’s Executive Board. Once approved, Pakistan will gain access to around $1.1 billion, summing up the total disbursements under the SBA to approximately $3 billion.
“We do expect the board meeting to take place in late April,” Kozack affirmed.
“So again, let me step back and give you the overview. So, on March 19, IMF staff and the Pakistani authorities reached staff level agreement on the second and final review under Pakistan’s Stand-By Arrangement, SBA. This is subject to approval by the IMF’s Executive Board. Upon approval by the Board, Pakistan will have access to around $1.1 billion, and that would bring total disbursements under the SBA to about $3 billion. We do expect the board meeting to take place in late April. The agreement recognizes the strong, the staff level agreement, recognizes the strong program implementation by the State bank of Pakistan and the caretaker government in recent months, as well as the new government’s intentions for ongoing policy and reform efforts to move Pakistan from stabilization to a strong and sustainable recovery,” she added.
She further said, “Pakistan’s economic and financial improvement has improved in the months since the first review was completed. Growth and confidence are continuing to recover. And we will be releasing in the next weeks as part of our World Economic Outlook, our latest growth forecasts for Pakistan. So, I will refer you to those documents and those press conferences. The authorities have expressed interest in a successor IMF supported program with the aim of resolving Pakistan’s fiscal and external stability challenges and laying the foundation for inclusive growth. And, of course, we stand ready to engage in program discussions in the coming months.”
As of March 29, Pakistan’s foreign exchange reserves increased by $19 million on a weekly basis, reaching $8.04 billion. However, the total liquid foreign reserves amounted to $13.38 billion, with net foreign reserves held by commercial banks at $5.34 billion. While these figures show improvement, they remain low for an import-dependent economy, potentially exerting pressure in the future.
