The International Monetary Fund (IMF) announced that it has reached a staff-level agreement with Pakistan on the first review of a $3 billion bailout. The agreement will allow Pakistan to receive $700 million pending approval from the Fund’s Executive Board. The IMF executive board had previously approved a nine-month standby arrangement (SBA) for Pakistan in June, allowing for an immediate disbursement of $1.2 billion with the rest to be phased over the program’s duration. The IMF’s technical staff initiated the first evaluation of the short-term loan on Nov 2, which concluded on Nov 10.
The IMF’s team led by Nathan Porter was in Islamabad to hold discussions on the first review of the SBA. Upon approval, $700 million will become available, bringing total disbursements under the program to almost $1.9 billion.
According to the IMF, Pakistan has shown signs of a nascent recovery buoyed by international partners’ support and improved confidence, although the country remains susceptible to external risks. The IMF mission chief emphasized the need to continue building resilience.
The statement by the IMF was released hours after senior IMF officials called on interim Prime Minister Anwaarul Haq Kakar. The Prime Minister’s Office also acknowledged the ongoing efforts made by the government in meeting the various quarterly targets.
IMF Managing Director Kristalina Georgieva praised the Pakistani authorities and finance minister for their commitment to the program, but also emphasized the need for improved tax collection in Pakistan.
Meanwhile, Senator Raza Rabbani condemned the IMF’s direct communication with Pakistan’s key partners, stating that it was a matter of deep shame and regret for the caretaker government. He demanded that the interim government bring details of its meeting with the fund before the Senate.