IMF Board Meeting Scheduled on January 11 for Pakistan’s first review approval

According to Bloomberg, the International Monetary Fund’s Executive Board will take up Pakistan’s first review on January 11 next year for approval, which will unlock $700 million under the standby arrangement (SBA).

Pakistan, having reached a staff-level agreement with the IMF for a $3 billion SBA, awaits board approval for the second tranche. The first review was not on the December agenda due to scheduling uncertainties amid efforts to secure creditor confirmations for the $24.9 billion fiscal year financing.

Speculation arises that the IMF’s second review talks may coincide with post-election governance in February 2024. The current SBA program concludes on April 14, 2024. IMF officials, including Executive Director Bahador Bijani, acknowledged Pakistan’s economic improvement.

Nathan Porter, IMF Mission Chief to Pakistan, praised the government’s commitment to stabilization. However, challenges persist, with high inflation, substantial debt due, and upcoming elections in February 2024. Interim Finance Minister Shamshad Akhtar suggested the possibility of seeking additional IMF support, citing the country’s “fragile” economy.