ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on second and final review under the Stand-By Arrangement (SBA) paving the way for the release of the last $1.1 billion tranche from the lender, the IMF said on Wednesday.
According to a press statement issued by the IMF, “The agreement has recognized the strong program implementation by the State Bank of Pakistan (SBP) and the caretaker government of the country in recent months, as well as the new government’s intentions for current policy and reform efforts to move Pakistan from stabilization to a strong and sustainable recovery”.
It said, “Given the timing of the Second Review mission, immediately after the formation of the new cabinet, we expect the review to be considered by the IMF’s Board in late April.”
“Pakistan’s financial and economic position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners,” IMF Mission Chief Nathan Porter said.
Nathan Porter stated that the new government in the country is committed to continue the policy efforts that started under the current Stand-By Arrangement to entrench economic stability for the remainder of the current year.
The statement said that the authorities expressed interest in a successor medium-term Fund-supported programme with the aim of permanently addressing Pakistan’s fiscal and external sustainability weaknesses, strengthening its economic recovery, and laying the foundations for strong, sustainable, and inclusive increase.
The IMF team thanked the Pakistani authorities, private sector, and development partners for fruitful discussions and cooperation throughout this mission,” the statement further said.
