ISLAMABAD: A delegation from the International Monetary Fund (IMF) is scheduled to visit Pakistan on November 2 for discussions regarding the initial assessment of the country’s $3 billion standby arrangement (SBA).
The Finance Ministry of Pakistan has initiated preparations for the upcoming talks with the global lending institution.
IMF’s resident representative, Esther Perez Ruiz, confirmed this development. Pakistan, currently under a caretaker administration, is focused on economic recovery following the IMF’s approval of its loan program in July of this year.
This loan program played a crucial role in averting a sovereign debt default, with Pakistan receiving the initial $1.2 billion tranche shortly after approval.
Esther Perez Ruiz mentioned, “An International Monetary Fund team led by Mr. Nathan Porter will embark on a mission to Pakistan starting on November 2 for the first review under the current Stand-By Arrangement.”
Concurrently, the Finance Secretary has called for a vital meeting involving all ministries, divisions, and departments to receive updates on structural benchmarks, indicative criteria, and performance criteria agreed upon with the IMF for the end of September 2023.
The Finance Ministry has implemented extensive measures to meet the budget deficit target set in agreement with the lender. Provinces were cautioned to reduce their expenditures, and recent provisional estimates indicate notable progress in this regard, particularly in Punjab and Sindh.
An additional challenge in managing the overall fiscal deficit is the growing debt servicing requirements, expected to exceed Rs8.3 trillion and reach Rs8.5 trillion in the current fiscal year 2023–24. This deviation from the initial target of Rs7.3 trillion is primarily due to the elevated policy rate set by the central bank.
