IMF reaches staff-level agreement with Pakistan on releasing last tranche of $3 billion bailout

Islamabad/Washington: The IMF has reached a staff-level agreement with cash-strapped Pakistan on the final review of a $3 billion bailout, paving the way for the release of the last $1.1 billion tranche from the lender.

The release of the final tranche is subject to the approval of the IMF’s Executive Board, the global lender said.

An International Monetary Fund (IMF) team, led by Nathan Porter, visited Islamabad from March 14-19 to hold discussions on the second review of Pakistan’s economic programme supported by an IMF.

The IMF Executive Board approved the $3 billion Stand-By Arrangement for Pakistan last year.

“The agreement recognises the strong programme implementation by the State Bank of Pakistan and the caretaker government in recent months, as well as the new government’s intentions for ongoing policy and reform efforts to move Pakistan from stabilisation to a strong and sustainable recovery," the IMF said in a statement.

“Given the timing of the Second Review mission, immediately following the formation of the new cabinet, we expect the review to be considered by the IMF’s Board in late April,” the Fund said.