"IMF Board Poised to Review Pakistan's Request for Final Tranche Release under SBA Program"

 Islamabad, April 29, 2024 (Geo News): The International Monetary Fund (IMF) Executive Board is set to deliberate on Pakistan's request for the release of the final $1.1 billion tranche of the Stand-By Arrangement (SBA) today, according to Ministry of Finance sources as reported by Geo News.

The Ministry sources disclosed that the likelihood of approval for the third and last tranche is high, given that the IMF delegation has already recommended it. "The global financial body has already disbursed $1.9 billion under the agreement, and Pakistan is now anticipating the release of the third tranche," the sources stated.

They also emphasized that Pakistan has diligently adhered to the targets set forth in the agreement, demonstrating its commitment to fiscal discipline and economic reform.

Moreover, discussions regarding a new loan program are on the horizon, with the economic team scheduled to engage in negotiations with the IMF in May. The IMF delegation is slated to visit Pakistan in mid-May to deliberate on a fresh long-term Extended Fund Facility (EFF), following the conclusion of the current $3 billion Stand-By Arrangement.

In a significant development, Prime Minister Shehbaz Sharif engaged in talks with IMF Managing Director Kristalina Georgieva during the World Economic Forum Special Meeting in Riyadh. Reaffirming his government's dedication to revitalizing Pakistan's economy, PM Shehbaz underscored the importance of a new loan agreement.

"In our first meeting since my re-election, I reiterated our commitment to steering Pakistan towards economic stability," PM Shehbaz stated, as per a statement from the PM Office. The discussions centered on the prospect of Pakistan entering into another IMF program to solidify the progress made in the past year and sustain positive economic growth.

PM Shehbaz expressed gratitude to IMF chief Georgieva for the assistance provided in securing the $3 billion SBA last year, which is now nearing its conclusion. Georgieva, in turn, commended PM Shehbaz's leadership for the timely acquisition of the SBA and shared insights into the ongoing program's review process.

During the meeting, PM Shehbaz reiterated his directive to his financial team, led by Finance Minister Muhammad Aurangzeb, to enact structural reforms and uphold fiscal discipline. These measures, he emphasized, are crucial for ensuring macroeconomic stability and fostering sustained economic growth.

The discussions between the Pakistani leadership and the IMF reflect a shared commitment to economic reform and stability, underscoring the importance of international cooperation in addressing Pakistan's economic challenges.