Pakistan reaches staff-level agreement with IMF for second tranche

Pakistan and International Monetary Fund (IMF) have reached a staff-level agreement on the first review under Pakistan’s Stand-By Arrangement (SBA), ARY News reported. 

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

The agreement is subject to the approval of IMF’s Executive Board after approval around US$700 million will be available bringing total disbursements under the program to almost US$1.9 billion.

According to details, the agreement is subject to approval of the IMF’s Executive Board and upon approval around 700 million US dollars will become available bringing total disbursements under the program to almost 1.9 billion US dollars.

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.

Read more: IMF Mission Chief Nathan Porter meets PM Kakar

The IMF team thanked the Pakistani authorities, private sector, and development partners for fruitful discussions and cooperation throughout this mission.

Earlier, IMF Mission Chief Nathan Porter and IMF Resident Representative for Pakistan Esther Perez Tuiz called on Caretaker Prime Minister Anwaarul Haq Kakar.

PM Anwaarul Haq Kakar reaffirmed government’s enduring commitment to the reform efforts agreed with the IMF aimed at stabilizing the Pakistan’s economy.

Speaking on the occasion, the IMF Mission Chief and Resident Representative apprised the caretaker prime minister of status of the negotiations held at the technical levels with the team of Pakistani government under the First Review of the Standby Agreement.

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.