IMF board schedule continues, Pakistan’s economic review not included
Pakistan to get $1.1 billion tranche with IMF board approval—File: Photo
Islamabad: The schedule of the meeting of the Executive Board of the International Monetary Fund (IMF) till April 29 has been released, in which the economic review of Pakistan has not been included.
Economic review of Pakistan is currently not included in the agenda of the IMF Executive Board meeting, while the staff-level agreement between Pakistan and the IMF was concluded on March 20, 2024.
With the approval of the IMF Executive Board, Pakistan will receive the final tranche of $1.1 billion and with the final approval of the final tranche, the standby arrangement of $3 billion will end.
Earlier, the meeting of the IMF Executive Board on the issue of Pakistan was indicated to be convened at the end of April and the Federal Ministry of Finance said that Pakistan has met all the targets for the last tranche and reviewed with the staff level agreement. The mission will recommend the release of the final installment.
Also read: All targets for the last tranche from the IMF have been met, Ministry of Finance
On the other hand, Finance Minister Muhammad Aurangzeb told a foreign news agency in an interview in Washington on April 16 that negotiations have begun with the IMF on a new billion-dollar loan agreement for the economic reform program.
Mohammad Aurangzeb said that the final installment of 1.1 billion dollars under the ongoing program agreement with the IMF is likely to be approved by the end of this month and with this, Pakistan has approved a new long-term loan program of several billion dollars. Talks have also started.
An agreement with the IMF is expected next month, Mohammad Aurangzeb
In an interview with a foreign news agency in Washington, Finance Minister Muhammad Aurangzeb has said that Pakistan aims to agree on a new debt framework in May, the current debt program will end in April and a new debt agreement with the IMF in May. Expected.
The finance minister said that Pakistan is looking for a long and big loan, assistance is necessary for macroeconomic stability, structural reforms, the IMF mission is expected to be in Islamabad in mid-May.
He said that if the loan is agreed upon, he will also request additional financing, the additional financing will be done under the Resilience and Sustainability Trust, the debt situation is also looking much better.
He said that most of our debt is being rolled over, there is no big risk during the current or next financial year, we have to pay an average of 25 billion dollars every year.
The Federal Minister of Finance said that with green bonds hoping to return to global markets, we have to return to a specific rating environment and has started discussions with rating agencies, hopefully in the next financial year. Rankings will improve.
Mohammad Aurangzeb declined to outline the size of the new program with the IMF, saying Pakistan would open a new tab of at least $6 billion in the next program.