The Executive Board of the International Monetary Fund (IMF) is scheduled to meet on April 29 to consider the approval of a $1.1 billion disbursement for Pakistan, as announced by the fund on Wednesday.

This disbursement marks the final installment of a $3 billion Stand-By Arrangement (SBA) that Pakistan secured last summer. The SBA was aimed at averting a sovereign default and is set to conclude by the end of this month.

In addition to this, Pakistan is actively pursuing a new, more substantial long-term loan from the IMF. Muhammad Aurangzeb, the Finance Minister of Pakistan, has suggested that a staff-level agreement for the new program could be reached by early July.

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Although a formal request for the loan has not been made yet, discussions between the Fund and the Pakistani government are already underway. The country is seeking a loan spanning three years to foster economic stability and implement significant structural reforms.

Pakistan’s $350 billion economy continues to grapple with persistent balance of payments challenges, including nearly $24 billion in debt and interest payments due in the upcoming fiscal year—amounting to three times the central bank’s foreign currency reserves.

For the fiscal year ending in June, Pakistan’s finance ministry forecasts economic growth at 2.6%, with average inflation expected to decrease to 24% from 29.2% in the previous fiscal year (2023/2024).

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