Prime Minister Shehbaz Sharif joins negotiations at World Economic Forum in Riyadh with IMF Managing Director Kristalina Georgieva for new loan program. IMF praises Pakistan’s policy and fiscal measures meeting targets under standby arrangement. Finance Minister Muhammad Aurangzeb expresses hope for staff-level agreement on new program by early July, though loan amount remains undisclosed.
“The disbursement will enhance economic stability in Pakistan,” says Sharif, underlining standby arrangement’s role in preventing default on external liabilities.
£796 million disbursement signifies final tranche of Pakistan’s £2.3 billion standby arrangement with IMF, initiated last summer to mitigate risk of sovereign default.
Pakistan grapples with severe balance of payments crisis, with approximately £19 billion due in debt and interest payments over next fiscal year—three times central bank’s foreign currency reserves. Economy projected to grow by 2.6 percent in current fiscal year, with inflation expected to decline to around 20 percent by end of June.
To transition from stabilization to sustainable recovery, IMF underscores importance of continued policy and reform efforts by Pakistani authorities.
