Pakistan will have to bring foreign exchange reserves equal to 2 months of imports by June 30 and arrange a loan of 10 billion dollars from international institutions. Photo: File
Islamabad: Pakistan and the International Monetary Fund (IMF) have agreed in principle on the Memorandum of Economic and Financial Policies (MEFP) and draft agreement at staff level and the agreement is expected to be signed next week.
Sources say that the International Monetary Fund review mission has expressed satisfaction over the measures taken under the reforms and Pakistan has provided a guarantee of implementation of the reforms to the IMF at the Prime Minister’s level.
Finance Ministry sources say that it has also agreed with the IMF to bring the country’s foreign exchange reserves equal to two months of imports by June 30. Pakistan has to manage more than 10 billion dollars through friendly countries, international organizations and commercial debt. Apart from this, with the IMF, the economic growth rate of this year has been estimated to be up to two percent and inflation to be more than 29 percent.
According to sources, friendly countries and international financial institutions will also monitor the current loan program. While the IMF loan program will end after receiving 2.5 billion dollars by June 2023. If necessary, Pakistan will make a fresh application for the new loan program for the next financial year.
According to officials, the IMF’s executive board will approve the $1.1 billion tranche three to four weeks after the deal. Pakistan is expected to request the IMF to convene a special board meeting.
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