Hours after talks between Pakistan and the International Monetary Fund concluded, the Fund officially said a staff-level agreement has been reached regarding the stand-by agreement. The agreement will lead to $1.1 billion being released.
“The IMF team has reached a staff-level agreement with the Pakistani authorities on the second and final review of Pakistan’s stabilization program supported by the IMF’s US$3 billion,” Nathan Porter, who led the IMF delegation, said in a statement.
The statement added that the agreement would be subject to approval by the IMF’s executive board after which the SBA’s final tranche worth $1.1 billion will be released.
IMF also said that Pakistan’s economic situation has improved over the course of the reviews, particularly with help from friendly countries.
“Pakistan’s economic and financial position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners,” IMF said.
The Fund’s statement noted that economic growth would remain ‘modest’ this year and inflation would also remain above target.
IMF also confirmed that Pakistan has expressed interest in securing a medium-term fund facility.
