The IMF board of directors is expected to meet on May 9, during which a final decision will be taken concerning the disbursement of a $ 1.1 billion loan section in Pakistan.
This follows the staff agreement between the IMF and Pakistan reached in March, with the final approval scheduled for the next meeting.
The announcement of the IMF council meeting had a positive impact on the Pakistan stock market, which experienced a slight recovery of 135 points after an initial decrease of 500 points.
The PSX had opened its doors this week in the middle of the Pakistani-Indian tension after the murderous attack in the Pahalgam region, the Indians illegally occupied the Jammu and the cashmere (iiojk).
The IMF agreement includes climate financing worth $ 1.3 billion, as well as an additional 28 -month program, which will bring total financial support to Pakistan to $ 2.3 billion.
The IMF and Pakistanis authorities have also agreed to implement the installation of resilience and sustainability to meet the country’s long -term challenges, including climate risks and energy sector reforms.
According to the IMF, the Government of Pakistan is committed to continuing its economic reforms, including efforts to reduce public debt in a sustainable manner and improve resilience against natural disasters.
The IMF also highlighted the need for continuous efforts to improve the use of water and environmental objectives, as well as improved investment plans and budgetary measures to meet the climatic challenges.
Despite the improvement in economic activity, the IMF has warned that the risks for the country’s economy remain, in particular geopolitical tensions, the increase in global financial conditions and fluctuations in raw material prices.
The IMF highlighted the importance of maintaining budgetary discipline, emphasizing the fact of not exceeding the budget approved for the year.
Pakistan assured the IMF to expand its unconditional cash assistance program as part of the Benazir income support program (BISP) and implement measures to save on energy grants.
Earlier, the Federal Minister for Finance and Income, Senator Muhammad Aurangzeb, called for an urgent international action on climate resilience and economic diversification during high -level commitments during spring meetings 2025 of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC.
Speaking to dialogue for the fund to respond to losses and damage (FRLD), Aurangzeb called climate change as an existential threat to Pakistan, citing the floods of 2022.
He urged the rapid operationalization of the loss and damage fund with simple, agile and responsible mechanisms to ensure a timely disbursement for vulnerable countries.
