Pakistan and the International Monetary Fund (IMF) have reached a milestone with a staff-level agreement to release $1.1 billion from a crucial $3 billion bailout package.

Prime Minister Shehbaz Sharif engaged in discussions with the International Monetary Fund (IMF) Managing Director Kristalina Georgieva on the sidelines of the World Economic Forum Special Meeting in Riyadh. The IMF bailout package revolved around Pakistan’s pursuit of a new long-term Extended Fund Facility (EFF) following the imminent expiration of a $3 billion Stand-By Arrangement (SBA) this month.

Pakistan’s Economic Goals

PM Shehbaz reiterated his government’s commitment to restoring Pakistan’s economic stability and growth trajectory; he expressed gratitude for the IMF’s support in securing the previous SBA and emphasized the need for continued collaboration to consolidate past gains.

IMF chief Georgieva acknowledged Pakistan’s efforts and praised PM Shehbaz’s leadership for timely securing the SBA. Further discussions encompassed the formulation of a new bailout program, focusing on structural reforms, fiscal discipline, and prudent policies to sustain economic growth.

IMF Bailout Package: The Anticipated Progress

Pakistan formally requested an IMF bailout package ranging between $6 to $8 billion under the EFF, with the possibility of augmentation through climate financing. The exact size and timeframe of the program are subject to consensus, with further details expected to be finalized in May 2024.

Islamabad aims to secure a staff-level agreement on the new program by early July, pending the outcome of discussions and the IMF review mission scheduled for May 2024. The nation’s pursuit of economic stability emphasizes the effectiveness of international cooperation and strategic financial planning.

Read more: IMF Ready to Support Pakistan Amid Economic Reforms


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