Pakistan, IMF reach Staff-Level Agreement on First Review for SBA

ISLAMABAD – Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on the first review under the South Asian country's Stand-By Arrangement (SBA), the international lender said in a statement on Wednesday.

“The IMF team has reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of their stabilisation programme supported by the IMF’s US$3 billion (SDR2,250 million) SBA (Press Release No. 23/261),” it added.

The agreement is subject to approval of the IMF’s Executive Board. Upon approval, around US$700 million (SDR 528 million) will become available bringing total disbursements under the programme to almost US$1.9 billion.

An IMF team, led by Nathan Porter, visited Islamabad from November 2-15, 2023, to hold discussions on the first review of Pakistan’s economic programme supported by SBA.

“Anchored by the stabilisation policies under the SBA, a nascent recovery is underway, buoyed by international partners’ support and signs of improved confidence. The steadfast execution of the FY24 budget, continued adjustment of energy prices, and renewed flows into the foreign exchange (FX) market have lessened fiscal and external pressures,” the IMF said.

Also today, IMF Mission Chief Nathan Porter and IMF Resident Representative for Pakistan Esther Perez called on Caretaker Prime Minister Anwaar-ul-Haq Kakar.

The IMF Mission Chief for Pakistan Mr Nathan Porter and IMF Resident Representative for Pakistan Ms Esther Perez Tuiz called on the Caretaker Prime Minister Anwaar-ul-Haq Kakar today and apprised him of status of the negotiations held at the technical levels with the team of… pic.twitter.com/8isor3toBx

— Prime Minister's Office (@PakPMO) November 15, 2023

The prime minister reaffirmed the Government’s enduring commitment to the reform efforts agreed with the IMF as these are aimed at stabilizing the Pakistan’s economy in the long run.