Prime Minister Shehbaz Sharif emphasized the paramount importance of reducing debt as he responded to the International Monetary Fund’s (IMF) approval of the final $1.1 billion tranche for Pakistan under the $3 billion Stand-By Arrangement (SBA). He underscored that authentic success lies in eliminating debt rather than acquiring further loans.
PM Shehbaz expressed contentment over the approval of the third tranche by the Washington-based lender, which had already disbursed $1.9 billion to Pakistan under the agreement. He commended the financial team, including Finance Minister Muhammad Aurangzeb, for their dedication, stating that the $1.1 billion tranche would enhance economic stability.
The premier highlighted the government’s arduous decisions concerning the economy, noting their beneficial impact on improving and stabilizing economic indicators.
PM Shehbaz’s comments followed the completion of the IMF Executive Board’s final review of Pakistan’s economic reform program supported by the SBA. The IMF’s decision enables the immediate disbursement of SDR 828 million, bringing total disbursements under the arrangement to SDR 2.250 billion.
Antoinette Sayeh, IMF’s Deputy Managing Director and Chair, highlighted Pakistan’s positive economic indicators and urged Islamabad to capitalize on this stability through sustained macroeconomic policies and structural reforms beyond the current arrangement.
Pakistan has formally requested a new bailout package from the IMF, potentially ranging between $6 to $8 billion under the Extended Fund Facility (EFF), with the option of augmentation through climate financing. The specifics of the package will be determined after consensus on the major aspects of the program in May 2024.
