Talks with IMF to Begin This Week: Aurangzeb

Pakistan Initiates Talks with IMF for Second Review of Stand-By Agreement

Talks with IMF to Begin This Week: Aurangzeb. Pakistan is set to commence discussions with the International Monetary Fund (IMF) this week for the second review of the stand-by agreement, as stated by newly-appointed Finance Minister Muhammad Aurangzeb.

Aurangzeb, who was sworn in as finance minister on Monday, highlighted the challenges ahead, describing 2024 as a ‘difficult’ year for Pakistan’s economy. Nevertheless, he expressed optimism about the ongoing negotiations with the IMF.

The successful completion of the second review is crucial as it would unlock the final tranche of the Stand-By Arrangement (SBA), amounting to $1.1 billion. However, there is speculation that the talks could extend beyond the SBA’s final review, potentially leading to the formulation of a new medium-term economic program to address Pakistan’s economic challenges.

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The IMF has conveyed its readiness to engage with the new government, expressing optimism about the prospect of collaborating on economic policies. IMF spokesperson Julie Kozack highlighted the interim government’s efforts in maintaining economic stability through fiscal discipline, monetary policy measures, and safeguarding the social safety net.

Kozack emphasized the IMF’s commitment to working with the new government to ensure macroeconomic stability and prosperity for all citizens of Pakistan. The upcoming discussions with the IMF present an opportunity for Pakistan to address its economic concerns and pave the way for sustainable growth and development.