ISLAMABAD – International Monetary Fund (IMF) board is likely to approve $700mln loan for Pakistan in today’s executive board meeting that South Asian nation secures in $3 billion stand-by arrangement (SBA).
In November last year, the global lender approved staff level agreement (SLA) under which Islanabad is set to receive a disbursement of US$700 million.
The current IMF program is slatedb to end in mid April with around $1.8 billion remaining un-disbursed. US based fund earler released first tranche of $1.2 billion in July last year.
In recent months, Pakistan achieved all IMF targets and is looking to get much needed funds. The country raised power, gas and other tarrif in economic reforms suggested by IMF.
This development holds significance for Pakistan’s economic landscape as the disbursement of the next tranche could provide much-needed financial support. The outcome of the upcoming meeting will shape the trajectory of the ongoing economic cooperation between Pakistan and the IMF.
“Discussions between the IMF staff and the authorities on policies to strengthen macroeconomic stability in the coming year continue, and important progress has been made over the FY23 budget,” the IMF said in another statement.
The IMF also updated economic projections and data for Pakistan, depicting a challenging outlook for the country in 2024. According to the IMF’s latest figures, the projected real GDP for the year is anticipated to experience a contraction of 0.5pc, indicating potential economic headwinds.
Simultaneously, the projection for the Consumer Price Index in 2024 shows a significant increase. This suggests a substantial rise in inflation, posing additional challenges for the country’s economic stability.