IMF board scheduled to consider Pakistan's bailout deal today

The International Monetary Fund (IMF) Executive Board meeting will take place today (Wednesday) to review the $3 billion stand-by arrangement with Pakistan to release the first tranche of $1.1 billion as part of the loan programme.

Pakistan secured a badly needed $3 billion stand-by arrangement (SBA) from the International Monetary Fund on Friday, giving the South Asian economy a much-awaited respite as it teeters on the brink of default.

The staff-level agreement on the SBA is subject to approval by the IMF Executive board. The SBA is a bail-out package for offering emergency relief to strengthen Pakistan’s foreign exchange reserves.

The previous Extended Fund Facility expired on June 30, with the 9th, 10th, and 11th reviews pending.

Recently, the officials of the International Monetary Fund (IMF) held meetings with economic team of Pakistan People’s Party (PPP) and PTI, seeking assurance of their support for ‘key objectives’ under the new $3 billion Standby Agreement with Pakistan.

The IMF officials held a meeting with Naveed Qamar and Saleem Mandiwala – PPP’s economic team – to seek assurance on the bailout deal.

During the meeting, the two sides discussed $3 billion Standby Agreement – reached between the global lender and the government of Pakistan.

The Pakistan Tehreek-e-Insaf (PTI) leadership had also welcomed the $3 billion standby agreement (SBA) reached between International Monetary Fund (IMF) and the incumbent Pakistan government to preserve macroeconomic stability ahead of general elections.