WASHINGTON – The International Monetary Fund (IMF) on Monday put Pakistan on its Executive Board agenda for January 11 when the board is set to deliberate and potentially grant final approval for the disbursement of the next $700 million tranche under the existing $3 billion Stand-By Arrangement (SBA).
According to the IMF Executive Board calendar, the upcoming meetings are scheduled for Jan 8, 10 and 11, with Pakistan’s case slated for discussion on the last day.
The current IMF programme, amounting to $3bn, is expected to conclude in the second week of April, with approximately $1.8bn remaining undisbursed. The first tranche of $1.2bn was released in July.
In November 2023, a Staff-Level Agreement was reached between the IMF staff and Pakistani authorities regarding the first review under Pakistan’s SBA. This agreement is contingent upon approval by the IMF’s Executive Board. Despite expectations for board approval in December, it seems the process has been scheduled for Jan 11.
This development holds significance for Pakistan’s economic landscape as the disbursement of the next tranche could provide much-needed financial support. The outcome of the upcoming meeting will shape the trajectory of the ongoing economic cooperation between Pakistan and the IMF.
“Discussions between the IMF staff and the authorities on policies to strengthen macroeconomic stability in the coming year continue, and important progress has been made over the FY23 budget,” the IMF said in another statement.
Challenging outlook for Pakistan in 2024
The IMF also updated economic projections and data for Pakistan, depicting a challenging outlook for the country in 2024. According to the IMF’s latest figures, the projected real GDP for the year is anticipated to experience a contraction of 0.5pc, indicating potential economic headwinds.
Simultaneously, the projection for the Consumer Price Index in 2024 shows a significant increase. This suggests a substantial rise in inflation, posing additional challenges for the country’s economic stability.
