ISLAMABAD: The Pakistan Finance Ministry said on Wednesday that the second and final review of the Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) is scheduled to take place from March 14 to 18 in Islamabad.
In a press statement issued by the ministry, it was confirmed that Pakistan has successfully met all structural benchmarks, qualitative performance criteria, and indicative targets required for the completion of the IMF review. This upcoming review marks the conclusive phase of the SBA, expected to be followed by a staff-level agreement.
After the staff-level agreement, the final tranche of USD 1.1 billion will be disbursed, subject to approval by the IMF Executive Board.
It is pertinent to mention here that, in mid-July 2023, the International Monetary Fund (IMF) Executive Board approved a Stand-By Agreement (SBA) of US$ 3 billion for Pakistan.
The staff-level agreement on SBA, amounting to SDR 2,250 million (equivalent to about $3 billion or 111 percent of Pakistan’s IMF quota), was reached in the last week of June. This agreement followed meetings between an IMF staff team led by Nathan Porter and Pakistani authorities, held both in person and virtually.
On July 13, 2023, the IMF transferred US$1.2 billion to the State Bank of Pakistan (SBP) out of the total $3 billion allocated under the agreement approved by the IMF board the day prior. Subsequently, after the successful completion of the first review in mid-November 2023, Pakistan received $700 million following approval from the Fund’s Executive Board.
The SBA aims to support the authorities’ commitment to advancing fiscal consolidation, expediting cost-reducing reforms in the energy sector, completing the transition to a market-determined exchange rate, and pursuing reforms in state-owned enterprises and governance to attract investment and foster job creation, while concurrently strengthening social assistance measures.
