ISLAMABAD – The International Monetary Fund (IMF) on Wednesday reached a staff-level agreement with the Pakistani authorities on the first review under the Stand-By Arrangement (SBA), subject to approval by the IMF’s Executive Board.
Upon approval around US$700 million (SDR 528 million) will become available bringing total disbursements under the program to almost US$1.9 billion, said the IMF.
In a statement the global lender said, “Anchored by the stabilization 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. Inflation is expected to decline over the coming months amid receding supply constraints and modest demand. However, Pakistan remains susceptible to significant external risks, including the intensification of geopolitical tensions, resurgent commodity prices, and the further tightening in global financial conditions. Efforts to build resilience need to continue.”
IMF officials call on PM Kakar
Separately, IMF Mission Chief for Pakistan Nathan Porter and IMF Resident Representative for Pakistan Esther Perez Tuiz held a meeting with caretaker Prime Minister Anwaarul Haq Kakar and apprised him of the status of the negotiations held at the technical levels under the first review of the SBA.
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, 2023A statement issued by the Prime Minister’s Office said Porter acknowledged the efforts made by the government of Pakistan in meeting the various quarterly targets.
Porter said that the efforts had resulted in the “positive conclusion of the technical-level talks”. He said that both teams had extensive talks on various aspects of the SBA.
Porter also appreciated the role played by interim Finance Minister Shamshad Akhtar and her team and SBP Governor Jameel Ahmed in the talks.
PM Kakar thanked the IMF team for its ongoing work with Pakistan and praised the finance minister’s leadership and the contribution of her team in taking the programme forward. He also appreciated the role of the SBP governor.