The International Monetary Fund’s (IMF) Executive Board recently approved the release of a $700 million loan segment for Pakistan. This decision followed the completion of the first review of Pakistan’s economic program under the Stand-By Arrangement (SBA). The Ministry of Finance announced that this latest funding installment increases the total amount received by Pakistan under the SBA to $1.9 billion.
The approval stems from a preliminary agreement reached in November between IMF staff and Pakistani officials. This agreement, contingent on the Executive Board’s endorsement, was part of Pakistan’s commitment to various economic reforms. These reforms include fiscal consolidation, reducing costs in the energy sector, transitioning to a market-driven exchange rate, and improving state-owned enterprises and governance. The goal is to boost investment and job creation while continuing to enhance social assistance programs.