ISLAMABAD: After striking a staff-level agreement with the IMF, Pakistan has made plans to generate approximately $9 to $10 billion in loans from other multilateral creditors, including the World Bank, Asian Development Bank and Islamic Development Bank through programme and project lending during the current fiscal year.
The revival of the IMF programme will pave the way for the provision of a Letter of Comfort (LoC) from the Fund and the revival of programme/policy lending from the WB, ADB and IDB.
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The IMF’s Executive Board is expected to meet after the second week of August 2022 to consider the combined approval of the seventh and eighth reviews and the release of $1.17 billion tranche under the Extended Fund Facility (EFF).
However, the revival of the IMF programme hinges upon price increases only, and the Fund failed to mention any desired structural reforms for removing bottlenecks of the economy that ultimately resulted in the surfacing of twin deficits, known as the budget deficit and the current account deficit.
