IMF board likely to approve staff-level agreement with Pakistan on Dec 7

ISLAMABAD: The International Monetary Fund (IMF) executive board likely to approve the staff-level agreement with Pakistan on December 7, ARY News reported citing sources.

According to sources, the IMF executive board meeting will likely be held on December 7 and is expected to consider Pakistan’s case in the meeting.

Sources said that after the approval from IMF’s Executive Board around US$700 million will be available to Pakistan, bringing total disbursements under the program to almost US$1.9 billion.

Pakistan is also likely to receive $ 1 billion from gulf countries and $ 1.2 billion from Exim Bank whereas China has assured debt rollover for further two years.

On November 16, Pakistan and International Monetary Fund (IMF) reached a staff-level agreement on the first review under Pakistan’s Stand-By Arrangement (SBA).

This was disclosed in a statement issued by the IMF at the conclusion of delegation-level talks between the two sides in Islamabad.

Read more: Pakistan reaches staff-level agreement with IMF for second tranche

The agreement supports the authorities’ commitment to advance the planned fiscal consolidation, accelerate cost-reducing reforms in the energy sector, complete the return to a market-determined exchange rate, and pursue state-owned enterprise and governance reforms to attract investment and support job creation, while continuing to strengthen social assistance.

It is pertinent to mention here that Pakistan is operating under a caretaker government after an IMF loan programme, approved in July, helped avert a sovereign debt default.

Under the $3 billion standby arrangement (SBA), Pakistan received $1.2 billion from the IMF as the first tranche in July.

Last week, an IMF mission kicked off its review for the second loan tranche, which is expected to continue till Dec 15. A successful review would unlock $710 million for the country in December.