IMF team to visit Pakistan on Nov 2 for first review of standby arrangement

Karachi: An International Monetary Fund (IMF) mission is scheduled to visit Pakistan on November 2, marking a significant milestone in the nation’s ongoing economic recovery efforts. The visit aims to discuss the first review of Pakistan’s current $3 billion standby arrangement (SBA) with the international lender, as confirmed by the IMF’s resident representative to Pakistan, Esther Perez Ruiz.

Pakistan has been navigating a challenging path towards economic recovery, particularly under the stewardship of a caretaker government. This journey began in July when Pakistan entered into an IMF loan program, successfully averting a sovereign debt default. The program commenced with the disbursement of $1.2 billion from the IMF as the first tranche in July, providing vital support for the nation’s economic stability.

The IMF mission, led by Mr. Nathan Porter, is expected to undertake the critical task of conducting the first review under the current Stand-By Arrangement. This review is pivotal in assessing Pakistan’s progress in meeting the conditions and targets set forth in the agreement.

The visit coincides with intensified pressure from the IMF for Pakistan to expedite the privatization of state-owned enterprises that have been incurring significant losses. The caretaker government has been reported to be moving forward with privatization plans, with the national flag carrier, Pakistan International Airlines (PIA), being one of the key areas of focus.

As Pakistan continues to navigate economic challenges, this visit by the IMF mission holds significant implications for the nation’s economic recovery trajectory. The outcome of the first review will play a pivotal role in determining the effectiveness and success of the IMF’s financial support in stabilizing Pakistan’s economy.