The International Monetary Fund (IMF) has announced today that a staff-level agreement has been reached for the disbursement of the final loan installment of $1.1 billion. This financial assistance from IMF will help to improve Pakistan’s foreign reserves.
Despite this positive development, the IMF cautioned that economic growth remains modest and inflation rates exceed targets. Additionally, Pakistan is expected to raise gas and electricity prices further to manage circular debt levels as agreed for the current fiscal year.
An IMF delegation, led by Nathan Porter, concluded discussions on the second review of Pakistan’s economic program supported by an IMF Stand-By Arrangement during their visit to Islamabad from March 14-19, 2024.
While acknowledging Pakistan’s economic progress since the first review, the IMF emphasized the necessity of ongoing policy reforms to address the nation’s enduring economic vulnerabilities, particularly amidst persistent external and domestic financing challenges and an uncertain global environment.
