The International monetary Fund (IMF) and Pakistani authorities have reached a staff-level agreement on the second and final review carried out under a stand-by arrangement signed last year, clearing the way for the disbursement of the final tranche of nearly $1.1 billion, the fund announced on Wednesday.
An IMF delegation, led by Nathan Porter, visited Islamabad from March 14-19 to hold discussions on the second review of Pakistan’s economic program supported by the short-term financial arrangement.
Subject to the approval of the international lender’s executive board, Pakistan will now be able to access about $1.1 billion. The IMF board is expected to give the final approval during a meeting in the month of April.
The staff-level agreement followed the IMF’s recognition of strong program implementation by the State Bank of Pakistan and the country’s caretaker administration which was managing its financial affairs before the February 8 general elections. “Pakistan’s economic and financial position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners,” Porter said in a statement.
However, he added the growth was expected to remain modest this year and inflation well above the target.