The IMF Executive Board is scheduled to meet on May 9, during which a final decision will be made with respect to the disbursement of a section of loans of $ 1.1 billion to Pakistan.
This follows the agreement at the personnel between the IMF and Pakistan reached in March, and the final approval is expected at the next meeting.
The announcement of the IMF Board meeting had a positive impact on the Pakistan stock market, which saw a slight recovery of 135 points after an initial drop of 500 points.
The PSX had opened in a bearish feeling this week in the midst of Pakistan-India tension after the deadly attack in the Pahalgam area of illegally occupied Jammu and Kashmir (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 authorities of the IMF and Pakistaní have also agreed to implement the ease of resilience and sustainability to address the long -term challenges of the country, including climatic risks and reforms of the energy sector.
According to the IMF, the Pakistan government has pledged to continue its economic reforms, including efforts to reduce public debt sustainably 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 plans for greater investment and budgetary measures to address climate challenges.
Despite the improvements in economic activity, the IMF warned that the risks to the country’s economy remain, including geopolitical tensions, the increase in global financial conditions and fluctuations in basic products prices.
The IMF has emphasized the importance of maintaining fiscal discipline, with emphasis on not exceeding the approved budget for the year.
Pakistan has assured the IMF to expand its unconditional cash assistance program under the Benazir Income Support Program (BISP) and will implement measures to save on energy subsidies.
Previously, the Federal Minister of Finance and Income, Senator Muhammad Aurengzeb, has requested an urgent international action on climate resilience and economic diversification during high -level commitments in the 2025 spring meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC.
Speaking in the background dialogue to respond to loss and damage (FRLD), Aurengzeb described climate change 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 guarantee the appropriate disbursement to vulnerable countries.
