Sharif emphasized the importance of the standby arrangement in safeguarding Pakistan from defaulting on its external obligations. The IMF’s executive board approved the disbursement following discussions between Sharif and IMF Managing Director Kristalina Georgieva regarding a new loan program during the World Economic Forum in Riyadh.
The IMF acknowledged Pakistan’s policy and fiscal measures aimed at achieving targets under the standby arrangement. It noted improvements in macroeconomic conditions, forecasting a 2% growth for the current fiscal year.
Furthermore, Islamabad aims to secure a new, larger long-term Extended Fund Facility (EFF) agreement with the IMF, with Finance Minister Muhammad Aurangzeb expressing optimism about reaching a staff-level agreement by early July.
Source: Reuters