ISLAMABAD: Negotiations between Pakistan and the International Monetary Fund (IMF) for the $3 billion Stand-By Arrangement (SBA) are expected to commence from March 15.
Recently appointed Finance Minister Mohammad Aurangzeb has approved the initiation of talks with the IMF regarding the SBA and a potential new loan program.
Pakistan will discuss the disbursement of the final tranche of $1.1 billion under the existing SBA program during these discussions. Sources indicate that Pakistan has already met the targets set by the IMF for the second review.
Additionally, it’s likely that Pakistan will request a fresh loan program amounting to $6 to 8 billion. The finance ministry plans to collaborate with the IMF to establish economic targets for this proposed loan program.
Earlier on March 8, the IMF expressed its readiness to dispatch a mission to Islamabad for the second economic review following the formation of Prime Minister Shehbaz Sharif’s cabinet.
The IMF’s Director of Communications stated that while the current focus remains on completing the ongoing Stand-By Program, which concludes in April 2024, a mission for the second review will be dispatched promptly after the formation of the new cabinet in Pakistan.
