- Executive council to discuss Adjust the performance criteria.
- Will also think Request for an arrangement under RSF.
- Total disbursements in Pakistan to reach $ 2 billion if SLA approved.
Washington / Islamabad: The Board of Directors of the International Monetary Fund (IMF) should meet on May 9 to discuss the $ 1.3 billion agreement with Pakistan as part of its rescue program in the course of 37 months.
The meeting, in accordance with the declaration published by the IMF, will be addressed to the installations of the extended fund in Pakistan (EFF), at the request of modification of the performance criteria and at the request of an arrangement under the installation of resilience and sustainability (RSF).
The lender based in Washington and Islamabad reached a SLA and agreed with the first loan facility for $ 7 in March. ALS, a 28 -month -old agreement, would support Pakistan’s efforts to mitigate and adapt to climate change, the IMF said at the time.
If it is approved by the IMF board of directors, Pakistan will have access to around 1 billion dollars under the efficient, which brings about $ 2 billion.
Before the next meeting, the Minister of Finance, Muhammad Aurangzeb, recently met the director general of the IMF, Kristalina Georgieva, on the sidelines of the WB / IMF 2025 spring meetings in Washington and reaffirmed the government’s commitment to reforms in the key sectors.
In addition, the lender lowered the projection of economic growth in Pakistan for the current financial year to 3% to 2.6% – the World Bank, however, provides 2.7% growth in the financial year in June 2025.
In its report on global economic prospects, the IMF noted that the country’s GDP growth for the next fiscal year (2025-2026) is expected to reach 3.6%.
Inflation in Pakistan – which amounted to 23.4% in 2024 – is scheduled for 5.1% for the current financial year, the IMF providing more at 7.7% in the next fiscal year.
The IMF has also revised its forecasts for the deficit in the current account of Pakistan. It now expects the deficit to amount to 0.1% of GDP, compared to its previous estimate of 1%.
In nominal terms, the current account difference should be only $ 400 million, instead of the previously projected $ 3.7 billion.
For 2026, the lender expects the current account deficit to increase even to 0.4% of GDP.
The unemployment rate should remain 8% in 2025, compared to 8.3% in 2024 – with an additional decrease of 7.5% in 2026, according to the report.
In addition to having the hope of receiving IMF funding, Pakistan, according to Finin Aurangzeb, asked China to increase its exchange line by 10 billion yuan ($ 1.4 billion).
“Pakistan already has an exchange line of 30 billion existing yuan [….] From our point of view, reaching 40 billion would be a good place to move to […] We have just submitted this request, “said the minister, addressing a press conference after his week’s trip to the United States.
