IMF team to visit Pakistan after General Elections

The US-based lender’s mission will engage in talks regarding the $3 billion Standby Arrangement (SBA) program with the newly elected government.

Although the exact schedule of the IMF officials is yet to be confirmed, it is anticipated to occur post the upcoming elections scheduled for the next month. Initially planned for March 1, 2024, Pakistan proposed a revised date of March 15, 2024, for the second review by the IMF.

Should the review be concluded by mid-March 2024, the IMF’s Executive Board could potentially approve the $1.1 billion tranche by April.

The uncertainty lies in how the transition from the current program to a new one would unfold amid the country’s election activities. The timing of signing the program is contingent upon the formation of the next government.

There were earlier reports suggesting political parties’ urging to complete the second review during the caretaker setup’s tenure. With a population of 240 million, Pakistan still requires an additional IMF program and support from friendly nations and lenders beyond the current election cycle and the ongoing standby arrangement.

The IMF has also revised its projection for Islamabad’s external financing needs for FY 24 to $24.965 billion. The US-based lender had previously approved a $700 million loan for Pakistan under a $3 billion bailout, contributing to a total disbursement of approximately $1.9 billion under the Standby Arrangement (SBA) signed last year.