The IMF Board approved Pakistan’s request to release funds.
Washington:
The International Monetary Fund (IMF) board has given the go-ahead for a $1.1 billion loan tranche to Pakistan, signaling the end of the second bailout package, ARY News reported.
This latest funding is the third and final installment of the $3 billion standby agreement with the IMF and is crucial for Pakistan to avoid a sovereign debt default, especially as the existing agreement expires this month. is important.
After discussions in Washington, the IMF Executive Board approved Pakistan’s request to release funds. Officials have indicated that Pakistan can expect to receive loan disbursement quickly, possibly as early as tomorrow (Tuesday), subject to IMF approval (ARY News reported).
Last month, Pakistan and the IMF reached a staff-level agreement on a final review of the $3 billion bailout package. The country has already received two tranches totaling $1.9 billion, with $1.2 billion paid in July and another $700 million in January 2024.
Looking ahead, Pakistan is eyeing new, larger IMF loans over a longer period of time. Finance Minister Mohammad Aurangzeb has indicated that Islamabad could reach staff-level agreement on the new program as early as July.
The focus is on securing financing for at least three years to strengthen macroeconomic stability and implement much-needed structural reforms. However, the exact scale of the program remains undisclosed.
The development follows Pakistani Prime Minister Shehbaz Sharif’s meeting with IMF Managing Director Kristalina Georgieva, where he reaffirmed his government’s commitment to revitalizing Pakistan’s economy.
At the meeting, held on the sidelines of a special meeting of the World Economic Forum, the Prime Minister underlined his administration’s commitment to implementing structural reforms, ensuring fiscal discipline, and pursuing prudent policies for sustained economic growth. .
The prime minister expressed his gratitude and thanked Georgieva for the IMF’s support in securing a $3 billion standby agreement last year, ARY News reported.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
