Islamabad (Web Desk/Agencies): Pakistan and the International Monetary Fund (IMF) on Wednesday reached staff level agreement on the first review of Stand-By Arrangement (SBA), enabling Pakistan to get $700 million after approval from the Fund’s Executive Board.
“IMF staff and the Pakistani authorities have reached a staff-level agreement on the first review under Pakistan’s Stand-By Arrangement (SBA), subject to approval by the IMF’s Executive Board,” the global lender said in a statement.
Upon approval, Pakistan will have access to SDR 528 million (around US$700 million), said the statement issued after visit of IMF team, led by Nathan Porter, from November 2-15, 2023, to hold discussions on the first review of SBA.
The agreement supports the authorities’ commitment to advance the planned fiscal consolidation, accelerate cost-reducing reforms in the energy sector, complete the return to a market-determined exchange rate, and pursue state-owned enterprise and governance reforms to attract investment and support job creation, while continuing to strengthen social assistance.
It is pertinent to mention here that the International Monetary Fund (IMF) Executive Board in mid July had approved the Stand-by Agreement (SBA) for US$ 3 billion for Pakistan.
The staff level agreement on SBA amounting SDR2,250 million (about $3 billion or 111 percent of Pakistan’s IMF quota) was reached during the last week of June after IMF staff team led by Nathan Porter held in person and virtual meetings with the Pakistani authorities to discuss a new financing engagement for Pakistan under the arrangement.
On July 13, the fund transferred US$1.2 billion to State Bank of Pakistan (SBP) out of total $3 billion under the agreement that was approved by the IMF board the previous day.
The balance amount of $1.8 billion was to be provided after two reviews that would be held in November 2023 and February 2024.