IMF to Consider $1.1 Billion Tranche for Pakistan

The International Monetary Fund (IMF) is set to convene its executive board meeting today to consider the approval of a $1.1 billion tranche for Pakistan. This tranche is the third and final installment under the Stand-By Arrangement between Pakistan and the IMF.

According to sources within the Finance Ministry, Pakistan has already received $1.9 billion from the IMF as part of the Stand-By Arrangement. The country has successfully met the agreed-upon targets set by the IMF during the course of the arrangement.

The Finance Ministry sources indicated that negotiations for a new loan program with the IMF economic team are scheduled to take place next month. An IMF delegation is expected to visit Pakistan in the middle of the following month to commence discussions on the terms of the new loan program.

Pakistan entered into a Stand-By Arrangement with the IMF in 2019 to address its balance of payments crisis and implement structural reforms to stabilize its economy. The arrangement included a series of financial disbursements contingent upon Pakistan meeting specific economic targets and reform milestones.

The outcome of the IMF executive board meeting will have significant implications for Pakistan's economic outlook. Approval of the $1.1 billion tranche will provide much-needed financial support to the country as it navigates ongoing economic challenges and seeks to implement further reforms to ensure long-term stability.