ISLAMABAD – The Pakistani finance ministry announced on Wednesday that the second and final review of a Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) is scheduled to take place in Islamabad from March 14 to 18.
Last summer, Islamabad secured a last-minute rescue package from the IMF to prevent a sovereign default. The successful completion of the final review is expected to release a tranche of approximately $1.1 billion.
According to a statement from the finance ministry, Pakistan has fulfilled all Structural Benchmarks, Qualitative Performance Criteria, and Indicative Targets required for the IMF review. The ministry anticipates reaching a staff-level agreement after this assessment, marking the conclusion of the SBA.
Once approved by the Executive Board of the IMF, the final tranche of $1.1 billion will be disbursed.
Prime Minister Shehbaz Sharif has instructed his finance team, led by newly appointed Finance Minister Muhammad Aurangzeb, to begin preparations for seeking an Extended Fund Facility (EFF) after the expiration of the current standby arrangement on April 11. The IMF has indicated readiness to formulate a medium-term program upon Pakistan’s application.
Prior to the previous bailout, Pakistan implemented several measures demanded by the IMF, including budget revisions, an increase in the benchmark interest rate, and hikes in electricity and natural gas prices. These measures resulted in soaring inflation and a sharp depreciation of the rupee against the USD.
