ISLAMABAD – An International Monetary Fund (IMF) delegation is set to visit Pakistan on November 2 for discussions related to the initial evaluation of the country’s $3 billion standby arrangement (SBA).
Pakistan’s finance ministry has begun preparations for these forthcoming talks with the global lending institution.
This development was verified by the IMF’s resident representative, Esther Perez Ruiz. The cash-strapped nation, currently operating under a caretaker administration, aims to move toward economic recovery following the IMF’s approval of its loan program in July this year.
This loan program averted a sovereign debt default, with Pakistan receiving its initial $1.2 billion tranche from the Washington-based lender shortly after approval.
Esther Perez Ruiz stated, “An International Monetary Fund team led by Mr. Nathan Porter will embark on a mission to Pakistan starting on November 2 for the first review under the current Stand-By Arrangement.”
Simultaneously, the finance secretary has called for a crucial meeting involving all ministries, divisions, and departments to receive updates on all structural benchmarks, indicative criteria, and performance criteria agreed upon with the IMF for the end of September 2023.
The finance ministry has taken extensive measures to adhere to the budget deficit target set in agreement with the lender. The ministry had cautioned the provinces to curtail their expenditures, and the most recent provisional estimates indicate that Punjab and Sindh have made notable progress in this regard.
An additional challenge in containing the overall fiscal deficit is the growing debt servicing requirements, which are expected to exceed Rs8.3 trillion to reach Rs8.5 trillion in the current fiscal year 2023–24. This is in contrast to the initial target of Rs7.3 trillion, primarily due to the elevated policy rate set by the central bank.
