imf board expected to approve staff level agreement with pakistan on december 7
The International Monetary Fund (IMF) executive board is anticipated to grant approval for the staff-level agreement with Pakistan on December 7, according to sources. Following this approval, approximately 0 million is expected to become available to Pakistan bringing the total Disbursements under the Program to nearly .9 billion.
This Development follows the staff-level agreement reached between Pakistan and the IMF on November 16 marking the first review under Pakistan’s Stand-By Arrangement (SBA). The agreement Underscores Pakistan’s Commitment to advancing fiscal Consolidation implementing Cost-reducing reforms in the Energy Sector Returning to a Market-determined exchange rate and Pursuing reforms in state-owned Enterprises and Governance to attract investment and Support job Creation all while reinforcing Social assistance Programs.
The approval by the IMF executive Board is a Crucial Step in the ongoing financial assistance Program Providing Pakistan with much-needed Support as it navigates economic Challenges. In addition to the IMF Fund, Pakistan is also expected to receive billion from Gulf Countries and .2 billion from the Exim Bank with China pledging a debt rollover for an additional two years.
This financial Support comes at a Crucial time for Pakistan which is currently operating under a caretaker government. The IMF loan Program approved in July Played a Pivotal Role in averting a Sovereign debt default. The billion Standby Arrangement (SBA) facilitated the disbursement of the first tranche of .2 billion in July.
The ongoing Review for the Second loan tranche by an IMF mission is set to Continue until December 15. A Successful review would unlock an additional 0 Million for Pakistan in December Providing further stability to the Country’s Economic outlook.