In a pivotal development, the International Monetary Fund (IMF) announced on Wednesday that it was on track to finalise the release of its last tranche to Pakistan by the end of this month. This announcement comes after months of negotiations between the IMF and Pakistan, aimed at bolstering the country’s economic stabilisation programme.
The IMF’s executive board had previously approved a nine-month, $3 billion Stand-By Arrangement for Pakistan in July 2023. Now, with the staff-level agreement reached on March 20, Pakistan is poised to gain access to approximately $1.1 billion upon approval by the IMF’s executive board.
Julie Kozack, IMF’s Communication Director, confirmed during a virtual news briefing that the board would convene by the end of April to finalise the release of the second and final tranche. Kozack emphasised that confidence in Pakistan’s economy was being restored, citing the successful negotiations and the staff-level agreement reached.
In response to the imminent release of funds, Prime Minister Shehbaz Sharif expressed optimism during a federal cabinet meeting, stating his hopes for the timely disbursement of the $1.1 billion tranche. He pointed out the significance of the IMF programme in consolidating Pakistan’s economy, hinting at plans to enter a new programme with the IMF.