Pakistan and IMF may conclude final review for $1.1 billion disbursement - Times of India

Source: The Times of India
Author: Toi World Desk

NEW DELHI: Pakistan and the International Monetary Fund have completed a staff level review of a 3 billion US dollars standby arrangement, with a potential disbursement of 1.1 billion US dollars for Pakistan's economy, according to Reuters.

This funding marks the final portion of a crucial financial lifeline Pakistan secured last year to prevent a default on its sovereign debt.

The IMF delegation engaged in discussions with Pakistani authorities in Islamabad over a five-day period to assess the fiscal targets set under the loan agreement.

Following the conclusion of the second and final review on Tuesday, both parties are set to release a statement on the outcome on Wednesday.

According to several reports, the identities of the officials involved have been kept confidential as the details of the discussions remain undisclosed.

Pakistan's Finance Minister Muhamad Aurangzeb has indicated that the country will explore the possibility of another IMF bailout after the current standby arrangement expires on April 11.

While the government has not officially disclosed the amount of additional funding it seeks, reports from Bloomberg in February suggested a figure of at least 6 billion US dollars.

Pakistan's economy, burdened by debt, experienced a 0.2% contraction last year and is projected to grow by around 2% in the current year. The nation faces severe economic challenges, including low reserves, a balance of payment crisis, high inflation at 23%, policy interest rates at 22%, and significant depreciation of the local currency.

Prior to securing the standby arrangement, Pakistan had to meet various IMF conditions, such as revising its budget, increasing interest rates, boosting tax revenues, and raising utility prices, all of which contributed to inflationary pressures.

( with input from agencies)

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