ISLAMABAD: The IMF on Wednesday said it has reached a staff-level agreement with the new government in cash-strapped Pakistan on the final review of a $3 billion bailout, paving the way for the release of the last $1.1 billion tranche from the global lender.
The agreement, however, is subject to the approval of the Executive Board of the International Monetary Fund (IMF) to be held in April.
Pakistan’s new finance minister Muhammad Aurangzeb, who assumed charge last week, had said that his priority was to start negotiations with the Washington-based IMF to bail out the country from its financial woes. Last year, the IMF Executive Board approved the USD 3 billion Stand-By Arrangement for Pakistan, the term for which is set to expire next month. So far, two tranches have been issued while the last one is pending the review of the conditions set by the lender.
“The IMF team has reached a staff-level agreement with the Pakistani authorities on the second and a final review of Pakistan’s stabilisation programme supported by the IMF’s USD 3 billion SBA,” the IMF said in a statement at Washington.