IMF Board Likely to Approve $1.1 Billion Final Tranche for Pakistan Today

The Executive Board of the International Monetary Fund (IMF) will meet today to discuss releasing SDR 828 million (around US$1.1 billion) to Pakistan as the third and final token of its $3 billion Stand-By Arrangement, Finance Ministry sources told ProPakistani. So far, Pakistan has received $1.9 billion from the IMF under this arrangement after adhering to the targets set by the lender. Sources added that both Pakistan’s economic team and the IMF will soon commence discussions on a new loan program next month. The IMF mission is expected to visit Pakistan in mid-May to negotiate for potentially signing off on a much bigger bailout compared to prior disbursements. Last week, Finance Minister Muhammad Aurangzeb said that he expects to reach a Staff-Level Agreement on a bigger loan program with the IMF by June-July 2024. Speaking at an event in Islamabad, the finance minister also unveiled his strategy to avoid any future IMF programs but only after obtaining a new large and longer 24th program. The minister mentioned at the time that the country is likely to secure more inflows in June, taking the foreign exchange reserves to $10 billion.