A preliminary accord has been struck between International Monetary Fund (IMF) officials and Pakistani representatives on the initial review of Pakistan’s Stand-By Arrangement (SBA). This understanding is contingent on the sanctioning of the IMF’s Executive Board. If endorsed, Pakistan will be eligible for Special Drawing Rights (SDR) amounting to 528 million, which is approximately US$700 million.
This arrangement endorses the dedication of the Pakistani authorities to follow through with their fiscal tightening strategy, expedite the implementation of reforms aimed at decreasing costs in the energy sector, finalize the transition to an exchange rate determined by market forces, and carry out reforms in state-owned enterprises and governance. These efforts are designed to draw in investments and bolster job growth, alongside a continuous emphasis on amplifying social safety nets.