IMF to decide on $700 million tranche for Pakistan next week

ISLAMABAD: The International Monetary Fund (IMF) has marked Pakistan on its Executive Board’s agenda for January 11, as disclosed on the official IMF website.

The upcoming meeting holds the pivotal agenda of deliberating and potentially granting final approval for the disbursement of the next $700 million tranche within the framework of the existing $3 billion stand-by arrangement (SBA).

As per the IMF Executive Board calendar, scheduled meetings are outlined for January 8, 10, and 11, with Pakistan’s case set for thorough discussion on the final day.

The ongoing IMF programme, totaling $3 billion, is anticipated to conclude in the second week of April, leaving approximately $1.8 billion yet to be disbursed. The initial tranche, amounting to $1.2 billion, was released in July.

The significant development occurred in November 2023, when a staff-level agreement was reached between the IMF staff and Pakistani authorities concerning the first review under Pakistan’s SBA.

However, the finalisation of this agreement is contingent upon the approval of the IMF’s Executive Board.

Despite initial expectations for international lenders’ approval in December, the process is now scheduled for January 11, 2024.

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