PM Shehbaz optimistic about IMF programme's approval by July 12
Business
The nine-month SBA will provide $3 billion, equivalent to 111% of Pakistan's IMF quota
LAHORE (Dunya News) - Prime Minister Shehbaz Sharif expressed optimism that the International Monetary Fund (IMF) would approve Pakistan's $3 billion bailout request in the upcoming board meeting on July 12.
Prime Minister Shehbaz Shareef credited the efforts of Finance Minister Ishaq Dar and his team for achieving a break-through and reaching a staff-level agreement. The IMF's executive board will review the Stand-by Arrangement (SBA) for Pakistan on July 12.
Initially absent from the June schedule, Pakistan's absence sparked speculation about the release of funds from the previous program that expired on June 30.
If approved, the nine-month SBA will provide $3 billion, equivalent to 111% of Pakistan's IMF quota. The approval from the board is typically granted after the completion of a staff-level agreement.
Pakistan had earlier cleared eight of the 11 listed programme reviews, with the ninth review pending since November last year.
The SBA will offer much-needed relief to Pakistan, which continues to face a severe balance of payments crisis and declining foreign exchange reserves. The country has also assured the IMF that no new tax amnesty will be introduced in the next nine months.
The prime minister expressed gratitude to IMF Managing Director Kristalina Georgieva and her team, considering this as Pakistan's opportunity to progress. Shehbaz Shareef reiterated that Pakistan was no longer threatened by default risks and said it is government’s responsibility to revive the country’s previously sinking economy and to help it to stand on its feet.
