Breakthrough development reported between IMF and Pakistan on Arrangement
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The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement on the initial review within Pakistan’s Stand-By Arrangement (SBA), according to an IMF statement on Wednesday.
The statement outlines the measures Pakistan has taken or will take to secure the next portion of the $3 billion loan. Notable commitments include allowing the exchange rate to be determined by market forces, raising electricity and gas prices, linking Benazir Income Support to education and health, pursuing state-owned enterprise privatization, and enhancing governance and transparency standards.
The agreement, subject to IMF Executive Board approval, would release around $700 million, bringing total disbursements to nearly $1.9 billion. The IMF team, led by Nathan Porter, conducted discussions in Islamabad from November 2-15, 2023, noting a nascent economic recovery but emphasizing the need for continued efforts to address external risks and ensure balanced growth.
The IMF highlighted Pakistan's commitment to fiscal consolidation, tax base expansion, social safety net strengthening, and reforms in the energy sector, financial sector, and state-owned enterprises.
