On July 14, 2022, Gerry Rice, the IMF's spokeswoman, was heard speaking during a press conference.
In 3-6 weeks, the IMF board will convene to discuss the disbursement of $1.17 billion, according to a spokeswoman.
In three to six weeks, the International Monetary Fund (IMF) board will convene to approve the final release of a $1.17 billion tranche to Pakistan, according to spokeswoman Gerry Rice.
In a press conference on Thursday, Rice said: "Board meeting can follow any time between three and six weeks. Within that period, could be a little bit earlier, could be a little bit later, could fall within that, but that's roughly the ballpark between the staff level agreement and then the final agreement, which comes from our Board."
The IMF announced on Thursday that it and Pakistan had reached an agreement to resume a stalled loan program, injecting $1.17 billion into the country's "struggling economy."
According to an IMF statement, a "staff level agreement" will boost the amount distributed under an extended fund facility (EFF) to $4.2 billion, with the potential to rise to $7 billion and last until June of the following year. This agreement is still subject to board approval.
When asked about the new development during the briefing, Rice responded, "We have established a staff level agreement with Pakistan, you know, it's been much in the headlines.
He affirmed that the payout will happen "very much right away" and that it will increase Pakistan's total IMF disbursements under the current program to well over $4 billion, or roughly $4.2 billion.
He told the media, "We're expecting this would assist stabilize the economy and among other things help broaden the social safety net to protect the most vulnerable; speed up structural reforms; and stabilize the macroeconomic situation in Pakistan."
The former prime minister Imran Khan approved a $6 billion rescue deal in 2019, but it was frequently delayed since his administration broke its promises to provide subsidies and failed to significantly increase tax collection.
The Prime Minister Shehbaz Sharif government, which assumed power in April and has virtually scrapped fuel subsidies and enacted new steps to increase the tax base, has been severely unpopularly tightening its belt for months prior to the current accord.
* According to a spokeswoman, the $1.17 billion will be disbursed "very much right away" following approval by the IMF Board. According to Gerry Rice, "We're hopeful this sum would assist stabilize Pakistan's economy."
* Estimates that Pakistan will receive around $4.2 billion in total payments from the IMF as part of the current program.
IMF's Executive Board is anticipated to convene after the second week of August to discuss the combined approval of the seventh and eighth reviews, according to Miftah Ismail, who also reports that Pakistan anticipates receiving $9 billion in budgetary/project loans in addition to IMF tranches. IMF neglects to highlight any necessary structural reforms to eliminate economic impediments that led to the emergence of twin deficits.
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