Pakistan satisfies IMF mission for $1.1bn disbursement under SBA

Pakistan is set to get the last tranche of the $3 billion standby arrangement after the country’s officials satisfied the International Monetary Fund (IMF) mission regarding its economic performance, ARY News reported, citing sources.

Sources said that the IMF mission in Pakistan has completed its review and is soon set to announce the agreement with the government for the release of the last tranche worth $1.1 billion.

The agreement, if successful, will be put before the IMF executive board in April for final approval.

The development comes a day after sources said that the negotiations with the global lending institution is likely to be extended as the two parties could not come to an agreement.

They went on to add that the IMF had demanded the government to regulate and bring to tax net cryptocurrency and other online trading platforms.

During the negotiations, Pakistan and the IMF discussed privatisation of loss-making state-owned enterprises as Pakistan International Airlines was put on the priority list for privatisation.

Sources had earlier said that the government rejected the IMF’s demand for National Finance Commission (NFC) Award revisit.

Citing the shortage of federal funds, the IMF asked the country to revisit the NFC Award with the provinces during the second review talks.

The sources within the government said no any recommendation on the NFC Award against the constitution will not be approved.

Pakistan averted a potential sovereign default after the previous coalition government led by Pakistan Muslim League-Nawaz (PML-N) reached a staff-level agreement with the IMF on a $3 billion SBA.

Finance Minister Muhammad Aurangzeb had said that Pakistan wants to seal the biggest and longest-running programme from the IMF.

“Pakitan will try to seal a bigger IMF loan programme as per its quota,” Muhammad Aurangzeb said while talking to newsmen in Islamabad March 13.