The IMF’s Executive Board is scheduled to meet on May 9, where a final decision is made to the payment of a loan tan to $ 1.1 billion to Pakistan.
This follows the staff accusation between the IMF and Pakistan reached in March, with the final approval expected at the upcoming meeting.
The announcement of the IMF board meeting had a positive influence on Pakistan’s stock market, in which it saw a slight recovery of 135 points after an initial dip of 500 points.
PSX was opened at a Bearish atmosphere this week in the middle of the Pakistan India tension after the deadly attack in the Pahaldam area of Indian illegally occupied Jammu and Kashmir (IIOJK).
The IMF agreement includes climate financing worth $ 1.3 billion as well as an additional 28-month program that will bring the overall financial support to Pakistan to $ 2.3 billion.
The IMF and Pakistani authorities also agree on the implementation of resilience and sustainability facilities to tackle the country’s long-term challenges, including climate risks and energy sector reforms.
According to the IMF, Pakistan’s government has committed to continuing its financial reforms, including efforts to reduce public debt sustainably and improve resilience to natural disasters.
The IMF also highlighted the need for continued efforts to improve water consumption and environmental goals as well as plans for improved investment and budgetary measures to tackle climate challenges.
Despite improvements in economic activity, the IMF warned that there will be risks to the country’s economy, including geopolitical tensions, rising global economic conditions and fluctuations in commodity 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 that it will expand its unconditional cash assistance program under Benazir Income Support Program (Bisp) and implement measures to save energy grants.
Previously, the Federal Minister of Finance and Revenue, Senator Muhammad Aurangzeb, has called for urgent international action on climate consumption and economic diversification under the publishing house at high level of 2025 spring meetings in the World Bank Group (WBG) and International Monetary Fund (IMF) in Washington, DC.
Aurangzeb, who spoke in the Fund dialogue to respond to losses and damage (FRLD), called climate change an existential threat to Pakistan with reference to the floods in 2022.
He called on the rapid operationalization of the loss and injury fund with simple, agile and responsible mechanisms to ensure timely payment to vulnerable countries.
