IMF reaches $3b staff-level agreement with Pakistan

Islamabad: International Monetary Fund (IMF) has reached staff-level agreement with Pakistan on a three billion dollar stand-by arrangement.

According to a press release issued by IMF, the staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.

The new SBA will support the authorities' immediate efforts to stabilize the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners.

The statement added that increased tax revenue would increase funding for public development. It would lead to fiscal discipline in Pakistan, and ensure energy reforms while allowing the exchange rate to be adjusted to the market.

IMF said that a nine-month standby agreement has been concluded with Pakistan, with the agreement, financing will be available to Pakistan from foreign countries and financial institutions.

According to the IMF, strict implementation of policies is necessary to address the current economic problems while reforming the energy sector.

It is pertinent to note that the period of the program between Pakistan and IMF is ending today (Friday) and earlier Finance Minister Ishaq Dar said yesterday (Thursday) that the bailout agreement with the IMF has been closed, and the new agreement is expected today, everything has been finalized.