Tag: IMF delegation

  • IMF team to visit Pakistan next week for crucial $3 billion SBA assessment

    IMF team to visit Pakistan next week for crucial $3 billion SBA assessment

    A delegation from the International Monetary Fund (IMF) is scheduled to visit Pakistan on November 2 to initiate discussions pertaining to the inaugural assessment of the nation’s ongoing $3 billion standby arrangement (SBA). 

    Pakistan is currently navigating a complex journey towards economic recovery, operating under an interim government. 

    This endeavour follows an IMF loan programme sanctioned in July, which was instrumental in averting a potential sovereign debt default. As part of this programme, Pakistan received an initial disbursement of $1.2 billion from the IMF in July.

    Esther Perez Ruiz, the IMF’s resident representative in Pakistan, has disclosed that a delegation led by Mr Nathan Porter from the International Monetary Fund will embark on a mission to Pakistan commencing on November 2, with the primary objective being the evaluation of the current Stand-By Arrangement.

    Additionally, the finance ministry has exerted significant efforts to maintain the budget deficit within the predefined limits agreed upon with the IMF. They issued warnings to the provinces, urging them to curtail their expenditures. Recent provisional estimates indicate that both Punjab and Sindh have made notable strides in this direction.

    However, a notable challenge in the quest to contain the overall fiscal deficit lies in the escalating debt servicing requirements. These obligations are projected to surpass Rs8.3 trillion and reach Rs8.5 trillion for the current fiscal year 2023–24. This surge is attributed to the central bank’s heightened policy rate, a departure from the initial target of Rs7.3 trillion.

  • IMF delegation to evaluate Pakistan’s economic performance during November visit

    IMF delegation to evaluate Pakistan’s economic performance during November visit

    The International Monetary Fund (IMF) is gearing up for a vital visit to Pakistan, scheduled for November. The purpose of this visit is to assess Pakistan’s economic performance, particularly focusing on the period from July to September.

    Reliable sources in financial circles have shared that this visit is part of an ongoing review following the extension of the loan programme. Representatives from the IMF and the caretaker administration will engage in important discussions to gauge Pakistan’s progress and its adherence to the outlined economic targets.

    Reports from ARY News indicate that Pakistan is on track to receive the next portion of financial assistance, which amounts to $700 million from the $3 billion loan programme. This development underscores Pakistan’s dedication to meeting the IMF’s conditions aimed at boosting economic stability and growth.

    Forecasts suggest that the IMF is set to disburse around $1.8 billion in funds to Pakistan by March 2024. This positive outlook reflects the gradual restoration of investor confidence and the promising trajectory of Pakistan’s economy.

    However, the release of these funds hinges on Pakistan’s successful completion of two critical economic reviews. This underscores Pakistan’s commitment to implementing structural reforms and achieving sustainable economic development.