- Executive Board to discuss Tweaks to performance criteria.
- It will also reflect on Application for disposition under RSF.
- Total disbursements to Pakistan to reach $ 2 billion if SLA approved.
Washington/Islamabad: The Executive Board of the International Monetary Fund (IMF) is scheduled to meet on May 9 to discuss the personnel level of $ 1.3 billion with Pakistan under its rescue program ongoing 37 months.
The meeting, according to the declaration issued by the IMF, will attend to the installation of extended funds (EFF) of Pakistan, the application for modification of the performance criteria and the request for an agreement under the center of resilience and sustainability (RSF).
The lender and Islamabad based in Washington reached an SLA and agreed the first review of the installation of loans of $ 7 in March. The SLA, a 28 -month agreement, would support Pakistan’s efforts to mitigate and adapt to climate change, the IMF had said at that time.
If the IMF Executive Board approves, Pakistan will have access to approximately $ 1 billion under the EFF, which carries the total disbursements under the program to around $ 2 billion.
Before the next meeting, the Minister of Finance, Muhammad Aurengzeb, recently met with the IMF managing director, Kristalina Georgieva, apart from the spring meetings of the WB/IMF 2025 in Washington and reaffirmed the government’s commitment to the reforms in the key sectors.
Separately, the lender has reduced the projection of economic growth of Pakistan for the current fiscal year from 3% to 2.6%, however, the World Bank projects a growth of 2.7% in the fiscal year that ends in June 2025.
In its Outlook Economic World report, the IMF said that it is projected that the country’s GDP growth for the next fiscal year (2025–26) increases to 3.6%.
Inflation in Pakistan, which stood at 23.4% in 2024, is forecast at 5.1% for the current fiscal year, and the IMF projects that it increases even more to 7.7% in the next fiscal year.
The IMF also reviewed its prognosis for Pakistan’s current account deficit. Now he expects the deficit to remain at 0.1% of GDP, compared to its previous 1% estimate.
In nominal terms, the current account gap is expected to be only $ 400 million, instead of the previously projected $ 3.7 billion.
By 2026, the lender expects the current account deficit to increase even more than 0.4% of GDP.
It is projected that the unemployment rate will remain at 8% in 2025, below 8.3% in 2024, with an additional decrease expected to 7.5% in 2026, according to the report.
In addition to having the hope of receiving funds from the IMF, Pakistan, according to Finmin Aurengzeb, has asked China to increase its currency exchange line by 10 billion yuan ($ 1.4 billion).
“Pakistan already has an existing line of 30 billion yuan [….] From our perspective, reaching 40 billion would be a good place to move towards […] We had just submitted that request, “said the minister while he was going to a press conference after his one -week trip to the United States.
