International Monetary Fund’s (IMF) Executive Board will hold a meeting today to review and approve a $3 billion Stand-By Arrangement (SBA) for Pakistan.
Pakistan expects that under the loan program, the Executive Board will also disburse the first installment of $1.10 billion, subject to the approval of the Initial Performance Criteria Board.
In the previously issued schedule in June, Pakistan was not included in the agenda, which led to speculation that the IMF would not release funds under the expiring program on June 30. However, on June 29, the IMF and Pakistan reached a staff-level agreement of a $3 billion Stand-By Arrangement to mitigate the country’s economic crisis.
The approval of the Executive Board of the IMF usually follows the agreement at the staff level. The Pakistani government expected to receive approximately $2.5 billion from the IMF, but it will be provided with $3 billion. Pakistan had completed eight out of eleven reviews of the previous program, but the ninth review had faced delays since last November.
Meanwhile, Pakistan has also submitted a Letter of Intent to the IMF, assuring the lender that no new tax amnesty will be introduced during the next nine months.
The letter is signed by Finance Minister Ishaq Dar and the Governor of the State Bank of Pakistan, affirming the commitment to remove trade barriers and maintaining the funding promises from other international financial institutions and bilateral donors.
A day before this meeting, the State Bank of Pakistan received $2 billion in deposits from Saudi Arabia.
