ISLAMABAD/ WASHINGTON: By the end of this month, the International Monetary Fund (IMF) board will finalize the transfer of its final tranche to Pakistan, an IMF official stated on Wednesday.
A $3 billion Stand-By Arrangement for nine months was agreed by the IMF’s executive board in July 2023 to assist Pakistan with its economic stabilization program.
Subject to the executive board of the IMF’s approval, the IMF and Pakistan came to a staff-level agreement on March 20 about the second and final review under the arrangement. Pakistan will have access to approximately $1.1 billion upon approval.
When asked about the status of the Fund’s negotiations with Pakistan during a virtual news conference on Wednesday, Julie Kozack, the director of communications for the IMF, stated that the executive board will convene by the end of this month to finalize the distribution of the Fund’s second and final tranche.
New lending scheme, according to PM Shehbaz, is “very important to consolidate economy.”
She emphasized that an agreement at the staff level had already been achieved by the two parties, and the IMF thought that trust in Pakistan’s economy was beginning to grow again. Thus, she said, the board will make its final judgment at the following meeting.
Shehbaz Sharif, the prime minister, had earlier on Thursday voiced optimism that the IMF will disburse the final $1.1 billion tranche of the current standby agreement this month.
Speaking at a federal cabinet meeting, he declared that it was “extremely important to consolidate the economy” that his government would be starting a new program with the IMF.
Privatization of PIA
The premier assured the gathering that the privatization of PIA was proceeding according to plan and that all deadlines would be carefully adhered to.
PM Shehbaz stated that a Turkish business was scheduled to arrive in Islamabad on April 6th to discuss the parameters of the outsourcing process with Pakistani authorities about the operation of airports.
Additionally, he informed the group that by the end of the month, the Federal Board of Revenue would name specialists to help digitize the tax collection process.
The prime minister also provided an update on the Special Investment Facilitation Council’s last meeting, which covered topics from a wide range of industries, including finance, investment, exports, IT, agriculture, power, and petroleum.
