Pakistan has received unambiguous instructions from the International Monetary Fund (IMF) to fulfill the obligations stated in the $3 billion Stand By Agreement.
Nathan Porter led the IMF mission that traveled to Pakistan to hold two weeks of negotiations on the agreement’s second tranche.
Pakistan’s demands for outside funding will be a major bone of contention in the negotiations, despite Pakistan’s assurances to the IMF that it is carrying out the aims and conditions. Furthermore, the IMF’s desire for “full market determination of the exchange rate” could make it difficult for the FX market to operate.
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Pakistan has achieved strides in areas including beneficiary cash transfers and circular debt management. Officials from the State Bank of Pakistan anticipate meeting their goals for net international reserves, and the Federal Board of Revenue has met its targets for revenue collection.
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