Pakistan, IMF kickstart discussions on further engagement

May 13, 2024 (MLN): Pakistan government and International Monetary Fund (IMF) mission have officially kickstarted the discussions on further engagement with the Fund, with the country looking for a larger and longer deal.

Federal Minister for Finance and Revenue Muhammad Aurangzeb met with the delegation of IMF mission led by its chief Nathan Porter on Monday, said a press release issued by the Finance Division.

The Finance Minister apprised the IMF team of the improvement in the macro-economic indicators over the course of the SBA and underscored the government’s commitment to continue with and expand upon the reform agenda.

The meeting was attended by Governor-State Bank of Pakistan, Chairman-Federal Board of Revenue, and senior officers of the Finance Ministry.

Last month, the debt-ridden nation completed the $3 billion Stand-By Arrangement (SBA).

Pakistan’s 9-month SBA, approved by the IMF Executive Board on July 12, 2023, successfully provided a policy anchor to address domestic and external imbalances and a framework for financial support from multilateral and bilateral partners.

The central bank has almost tripled its FX reserves from January 2023 ($3.1bn) to around $9.1bn on May 03, 2024, despite the repayment of a $1bn Eurobond last month.

The South Asian nation is now seeking a new larger and longer IMF loan to facilitate additional external financing and help in the adoption of structural reforms to deal with longstanding issues in the economy.

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