As the International Monetary Fund (IMF) prepares for its executive board meeting to evaluate and potentially approve a $3 billion Standby Arrangement (SBA) for Pakistan, a delegation from the IMF met with Imran Khan, Chairman of Pakistan Tehreek-e-Insaf (PTI), in Lahore.
The meeting, which took place at Khan’s residence and lasted over an hour, also included the presence of PTI Vice Chairman Shah Mahmood Qureshi. Former Finance Minister Shaukat Tarin briefed the delegation via video link.
The IMF’s board will convene on July 12 to examine Pakistan’s SBA. The financially-strained nation had agreed to a staff-level deal with the IMF for a $3 billion SBA, announced on June 30.
Potential Relief Amid Economic Crisis
Pakistan, suffering from soaring inflation and insufficient foreign exchange reserves to cover even a month of controlled imports, is in the midst of its worst economic crisis. Without the IMF deal, analysts predict a potential debt default.
IMF’s Mission Chief to Pakistan, Nathan Porter, confirmed the staff-level agreement for the nine-month SBA in a statement. The $3 billion funding surpasses Pakistan’s expectations as the country anticipated the disbursement of the remaining $2.5 billion from a $6.5 billion bailout package agreed in 2019.
The agreement comes after an eight-month delay, relieving Pakistan struggling with a severe balance of payments issue and dwindling foreign exchange reserves.
Engagement with Pakistan Peoples Party
Before the meeting with Khan, Federal Commerce Minister Syed Naveed Qamar discussed with Ester Perez Luis, the IMF’s country representative. Also, the delegation engaged with the Pakistan Peoples Party (PPP) finance team, including Senator Saleem Mandviwala.
The PPP team pledged its support for the IMF program to safeguard the nation’s economic stability. Naveed Qamar, representing the PPP finance team, highlighted the importance of the standby agreement in alleviating Pakistan’s economic problems. The interactions between the IMF and the PPP finance team indicate progress towards economic stability and reform in Pakistan.
