KARACHI – The International Monetary Fund IMF’s executive board is meeting today to review the $3 billion Standby Arrangement with Pakistan to release the first tranche of $1.1 billion as part of the loan programme.
The crisis hit Pakistan and the US-based lender reached a staff-level agreement last month to inject much-needed funds as extensive delay in negotiations pushed the South Asian nation to the brink of default.
Meanwhile, the Standby Agreement is subject to approval by the Executive Board of the multilateral lender.
Islamabad was earlier expecting $2.5 billion from the IMF lender but was given $3 billion. The country of 250 million earlier cleared eight of the 11 listed programme reviews, with the ninth review pending since November 2022.
Sharif led government earlier assured IMF, that no new tax amnesty will be introduced as the country is facing a worse debt crisis in recent times. Finance Ministry also removed trade barriers and upholding commitments to other financial institutions.
The government also made changes in 2023-24 budget which was revised to meet IMF conditions in a last ditch effort to secure bailout funds.
More to follow…
