imf board meeting on january 11 to decide on $700 million tranche for pakistan’s economic recovery
The International Monetary Fund (IMF) is set to Convene its Executive board Meeting on January 11 to Finalize the approval of Disbursing the Next $700 Million installment From its Ongoing $3 billion loan Program with Pakistan. This announcement Follows a Staff level agreement Reached between Pakistan and the IMF last month marking the Successful Completion of the First Review of the Bailout.
The $700 million tranche is the Second installment of Financial assistance aimed at aiding Pakistan Which has been Grappling with a Severe Balance of Payment Crisis. The Country’s Foreign exchange Reserves have Dwindled, and it Faces Historically High inflation Rates.
The initial Staff level agreement reached on November 16 Focuses on Various Economic Reforms. These Reforms include Planned Fiscal Consolidation Cost Reducing measures in the Energy Sector a return to a Market-determined Exchange Rate and Reforms in State owned Enterprises and Governance. The Overarching Goal is to attract investment Support job Creation and Strengthen Social assistance Programs.
Read More: Pakistani Rupee Gains Ground Against US Dollar: Positive Outlook Amid IMF Agreement and Financial Support
It’s Noteworthy that Pakistan is Currently under a Caretaker Government and the IMF’s loan Program approved in July Played a Crucial Role in Preventing a Sovereign Debt Default. Under the $3 billion Stand By Arrangement (SBA) Pakistan had Previously Received $1.2 billion as the first Tranche in July.
Read More: IMF Board Expected to Approve Staff-Level Agreement with Pakistan on December 7″
The Upcoming Board meeting on January 11 Holds Significance for Pakistan’s Economic Stability as the approval of the $700 million Tranche will Provide the Country with much needed Financial Support. This Financial assistance will Enable Pakistan to address its Balance of Payment Challenges and implement Essential Economic Reforms Outlined in the agreement with the IMF. The Successful Collaboration between Pakistan and the IMF is expected to Contribute to the Country’s economic Recovery and Long term Sustainability.