During a monthly press briefing, Julie Kozack, the spokesperson for the International Monetary Fund (IMF), revealed that the IMF authorities have shown interest in establishing a successor IMF-supported program to address Pakistan’s fiscal and external stability challenges, with the aim of fostering inclusive growth.
Kozack stated that the IMF is prepared to initiate discussions for the program in the upcoming months. She provided an overview of recent discussions between Pakistan and the IMF, highlighting that on March 19, the IMF staff and Pakistani authorities reached a staff-level agreement on the second and final review under Pakistan’s Stand-By Arrangement (SBA).
Pending approval by the IMF’s Executive Board, this agreement will grant Pakistan access to approximately $1.1 billion, bringing the total disbursements under the SBA to approximately $3 billion. Kozack anticipated the Board meeting to convene in late April for approval.
Acknowledging the robust program implementation by the State Bank of Pakistan (SBP) and the interim government in recent months, the staff-level agreement recognizes the new government’s commitment to ongoing policy reforms to transition Pakistan towards a sustainable recovery from stabilization.
Kozack noted that Pakistan’s economic and financial conditions have improved since the completion of the first review. Growth and confidence are showing signs of recovery, with the IMF set to release its latest growth forecasts for Pakistan as part of the upcoming World Economic Outlook in the coming weeks.
