The International Monetary Fund (IMF) executive board is scheduled to meet on January 11 to finalize its decision regarding the disbursement of the next $700 million tranche from its existing loan program with Pakistan, according to a Bloomberg report.
This follows a staff-level agreement reached last month between the IMF and Pakistan on the first review of the $3 billion bailout package, which paved the way for the release of the initial $700 million in funding.
The upcoming disbursement represents the second tranche of the bailout package.
Pakistan has been grappling with a severe balance of payments crisis, marked by dwindling foreign exchange reserves and historically high inflation.
On November 16, Pakistan and the IMF reached a staff-level agreement on the first review of the Stand-By Arrangement (SBA) program.
The agreement supports the Pakistani government's efforts to achieve fiscal consolidation, implement cost-reducing reforms in the energy sector, stabilize the exchange rate, and pursue state-owned enterprise and governance reforms to attract investment and promote job creation.
Additionally, the program prioritizes strengthening social assistance programs.
It is important to note that Pakistan is operating under a caretaker government, following the IMF loan program's approval in July, which helped prevent a sovereign debt default.
Under the $3 billion SBA, Pakistan received the first tranche of $1.2 billion in July.
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