IMF Executive Board to Meet on April 29 to Finalize Pakistan's $3 Billion Stand-By Arrangement

The IMF is set to review Pakistan's $3 billion bailout package on April 29, 2024, potentially approving the final $1.1 billion tranche. This crucial decision could provide much-needed economic stability for the country.

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Aqsa Younas Rana
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IMF Executive Board to Meet on April 29 to Finalize Pakistan's $3 Billion Stand-By Arrangement

IMF Executive Board to Meet on April 29 to Finalize Pakistan's $3 Billion Stand-By Arrangement

The International Monetary Fund (IMF) Executive Board is scheduled to meet on April 29, 2024 to finalize the review of Pakistan's $3 billion Stand-By Arrangement (SBA) and potentially approve the release of the final $1.1 billion tranche. Both the IMF and Pakistan have confirmed that Islamabad's case will be considered by the end of April.

The IMF's executive board calendar shows that Pakistan's request for the second review and release of the third tranche under the $1.1 billion SBA program has been included. A top official from Pakistan's Finance Division has confirmed that their case is included and will be considered by the IMF's executive board.

This meeting was initially anticipated to approve the release of the final tranche, as indicated by previous statements from both the IMF and Pakistani officials. However, the IMF's meeting schedule released on April 20 did not include Pakistan's program, leading to speculation that the country might need to renegotiate to receive the final tranche.

A former World Bank official has stated that these speculations are baseless, and that the delay in the meeting is likely due to scheduling complications, which usually do not affect the program after a staff-level agreement has been reached. On March 20, a staff-level agreement was reached between Pakistan and the IMF, paving the way for the release of the final $1.1 billion tranche.

So far, Pakistan has received $1.9 billion from the IMF in two installments under the SBA program. The approval from the IMF executive board is critical for Pakistan to access the remaining funds under the SBA program.

Why this matters: The IMF's approval of the final tranche is vital for Pakistan's economic stability and its ability to meet its financial obligations. The release of the funds will provide much-needed support to Pakistan's economy, which has been grappling with challenges such as high inflation and a widening current account deficit.

The upcoming IMF Executive Board meeting on April 29, 2024 will be a pivotal moment for Pakistan's $3 billion Stand-By Arrangement. The potential approval of the final $1.1 billion tranche will be a significant boost to Pakistan's economy, as the country continues to navigate through economic challenges. The confirmation from both the IMF and Pakistani officials regarding the inclusion of Pakistan's case in the meeting agenda has raised hopes for a positive outcome.

Key Takeaways

  • IMF board to meet on Apr 29, 2024 to review Pakistan's $3B SBA program.
  • Potential approval of final $1.1B tranche under the SBA program.
  • Pakistan has received $1.9B so far, with $1.1B remaining to be approved.
  • IMF approval critical for Pakistan's economic stability and financial obligations.
  • Confirmation of Pakistan's case on the agenda raises hopes for a positive outcome.