Washington: The International Monetary Fund (IMF) has granted approval for a USD 1.1 billion loan tranche for Pakistan, marking the final installment of a USD 3 billion standby arrangement crucial for the country’s economic stability, ARY News reported.
The decision by the IMF Executive Board follows discussions in Washington and signals the conclusion of Pakistan’s second bailout package. The disbursement of funds is expected promptly, with insiders suggesting as soon as Tuesday following the IMF’s authorization.
Pakistan’s request for the release of funds was approved after reaching a staff-level agreement with the IMF on the final review of the bailout package last month. With this approval, Pakistan will have received a total of USD 1.9 billion from the arrangement, with previous tranches disbursed in July and January 2024.
Looking ahead, Pakistan is eyeing a new IMF loan program over a longer duration to bolster macroeconomic stability and implement structural reforms. Finance Minister Muhammad Aurangzeb has indicated that Islamabad could secure a staff-level agreement on the new program as early as July, aiming for a loan spanning at least three years.
The approval comes after Pakistan Prime Minister Shehbaz Sharif’s meeting with IMF Managing Director Kristalina Georgieva, where he reiterated his government’s commitment to revitalizing the country’s economy. During the meeting, held on the sidelines of the World Economic Forum Special Meeting, Sharif expressed gratitude for the IMF’s support in securing the USD 3 billion Standby Arrangement last year and emphasized his administration’s dedication to implementing structural reforms and ensuring fiscal discipline for sustained economic growth.
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