Pakistan has reportedly given nine “major assurances” to the International Monetary Fund (IMF) as part of a $3 billion stand-by arrangement. The country, facing the risk of default, has sent a letter of intent to the IMF, signed by the Finance Minister and the Governor of the State Bank, outlining the assurances. These include commitments such as no amnesty schemes, increasing tax revenues, implementing financial discipline, energy reforms, market-determined exchange rates, lifting trade restrictions, implementing assurances of lending countries and institutions, boosting foreign exchange reserves, and introducing reforms in state institutions. The IMF’s executive board is expected to consider the letter of intent on July 12, and once approved, Pakistan can receive the $3 billion loan.
Last week, Pakistan signed a staff-level agreement with the IMF, paving the way for the $3 billion loan. The agreement was concluded through virtual negotiations between Pakistani authorities and the IMF Mission Chief. The final approval will be given by the IMF’s executive board, anticipated to occur in mid-July, following which Pakistan will have access to the loan funds.
