ISLAMABAD – As part of the $3 billion Stand-By Arrangement (SBA) program, Pakistan planned to initiate negotiations with the International Monetary Fund (IMF) after the general elections on February 8.
The expectation is that the formation of the new government post-general elections will conclude by the end of February 2024.
Therefore, the IMF’s assessment mission might conduct a second review by visiting Islamabad before the new government is fully established.
The sources confirmed that the IMF did not finalize the schedule for the second review, suggesting that assessment discussions may occur after the upcoming general elections.
The latest IMF staff report also indicated that during the signing of the Stand-By Arrangement in July 2023, the date for the second review was under consideration.
The recommendation for the second review in March 2024 was made at the end of December 2023.
Now, Pakistan has proposed a schedule for consultations on March 15, 2024, signaling a change in the completion date for the review.
If the second review concluded by March, the IMF’s Executive Board will have ample time to release the final tranche of $1.1 billion for Pakistan by April, concluding the current Stand-By Program on April 12.
