IMF set to hold crucial board meeting on Pakistan bailout deal today
The International Monetary Fund's (IMF) executive board will meet today to review the 3 billion US dollar stand-by agreement for Pakistan, which was finalised at the end of June.
Pakistan expects the board to also release the first tranche of 1.1bn dollar as part of the loan programme. The initial disbursement is contingent upon the board's approval.
Pakistan was absent from an earlier schedule released in June, igniting speculation that the IMF was not going to release funds from the previous programme that expired on June 30. On June 29, the IMF and Pakistan reached a stand-by arrangement to ease the country's financial crisis.
The board's approvals are generally granted once a staff-level agreement is done. The Pakistan government was expecting about 2.5bn dollar from the IMF, but it was given 3bn dollar. Pakistan had earlier cleared eight of the 11 listed programme reviews, with the ninth review pending since November last year.
According to the IMF's press statement, the new SBA aims to support Pakistan in stabilising its economy, addressing recent external shocks, maintaining macroeconomic stability and providing a framework for financing from bilateral and multilateral partners.
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