IMF board to meet on Jan 11 for Pakistan loan program approval

ISLAMABAD: The executive board of the International Monetary Fund (IMF) will meet on January 11 to consider the final approval to disburse the next $700 million tranche from its current loan programme with Pakistan, ARY News reported quoting Bloomberg report.

Last month, the IMF said it had reached a staff-level agreement with Pakistan on the first review of a $3 billion bailout, which will unlock $700 million in funding for the country.

The funds to be issued are a second tranche of the bailout.

Pakistan has been facing an acute balance of payment crisis, with its foreign exchange reserves diminished, along with historically high inflation.

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).

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.