Pakistan’s name on IMF Board meeting included
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Executive Board of the IMF will approve $7 billion SBA for Pakistan. If the IMF Board expresses satisfaction with Pakistan’s progress, it would pave the way for the release of instalments.
KARACHI: Pakistan’s name has been included by the International Monetary Fund (IMF) on the agenda of its Executive Board meeting scheduled for September 25, 2024.
The Executive Board of the IMF will finally approve the $7 billion stand-by arrangement (SBA) for Pakistan. If the IMF Executive Board expresses satisfaction with Pakistan’s progress, it would pave the way for the release of instalments.
Earlier on September 13, IMF’s Director of Communication, Julie Kozek, confirmed that an Executive Board meeting regarding Pakistan is scheduled on September 25, adding that negotiations for a new $7 billion loan program were finalized back in July.
It is pertinent to mention here that on July 12 Pakistan and the International Monetary Fund reached a three-year, $7 billion aid package deal.
The new programme, which needs to be validated by the Fund’s Executive Board, should enable Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth,” according to a statement.
The agreement is subject to approval by the IMF’s executive board.
Earlier on September 13, Finance Minister Muhammad Aurangzeb announced that all matters with the IMF have been settled amicably, stating, “Alhamdulillah, the Prime Minister is grateful to the IMF negotiation team and related institutions.”
He said the economy is now transitioning towards growth following stabilisation.
He added that a reduction in the policy rate will boost investment and business activities, creating employment opportunities.
The IMF is expected to approve the loan program for Pakistan during its Executive Board meeting scheduled later this month.
“The programme aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers and remove economic distortions to spur private sector-led growth,” the IMF statement said, quoting Nathan Porter, the Fund’s mission chief to Pakistan.
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