Pakistan will reach staff-level agreement with IMF soon: Governor SBP

Pakistan is on the verge of reaching a staff-level agreement with the International Monetary Fund (IMF), Governor State Bank of Pakistan, Jameel Ahmad announced Thursday after a Public Accounts Committee meeting in Islamabad.

Talking to reporters, Ahmad confirmed that virtual discussions with the IMF are ongoing, with all reform-related measures disclosed.

The country anticipates remittances to improve further, potentially leading to a revision in projections. Pakistan is expected to generate nearly $36 billion by the end of the current fiscal year.

Economic indicators suggest GDP growth of approximately 2.8%, with inflation forecasted to range between 7% and 8% for fiscal year 2025. Ahmad also noted that the current account deficit is expected to shrink.

IMF Mission Chief, Nathan Porter, in a statement issued on March 15, highlighted significant progress in discussions between Pakistan and the IMF.

"Program implementation has been strong, and the discussions have made considerable progress in several areas including the planned fiscal consolidation to durably reduce public debt, maintenance of sufficiently tight monetary policy to maintain low inflation, acceleration of cost-reducing reforms to improve energy sector viability, and implementation of Pakistan’s structural reform agenda to accelerate growth, while strengthening social protection and rebuilding health and education spending," Porter said.

He also emphasized advancements in Pakistan's climate reform agenda, which aims to mitigate risks associated with natural disasters. These reforms could potentially be supported under the Resilience and Sustainability Facility (RSF).

Porter added that virtual policy discussions will continue in the coming days to finalize the agreement.