Common Contracts
1 similar Stand-by Arrangement contracts
PAKISTAN-IMF STAFF LEVEL AGREEMENTStand-by Arrangement • July 3rd, 2023
Following long and inordinate delays and a push at the 11th hour, Pakistan has finally been able to reach Staff Level Agreement (SLA) with the IMF on a USD 3Bn Stand-By Arrangement (SBA). The agreement will be subject to approval from the IMF’s Execu- tive Board which is expected to meet around mid-July. The long awaited agreement which has been delayed by around 8 months comes right at the tail end of the pro- gram tenure which was set to run until Jun 30th, 2023. Amid a combination of sover- eign default risk looming large, dwindling forex reserves, weakening PKR, runaway inflation and historic interest rates, the agreement comes as a sigh of relief for the short term but also with a reminder that structural reforms are the need of the hour. We expect KSE–100 to cheer the agreement having been marred by thin participation and weak investor sentiment with improved confidence amid reduced macroeconom- ic concerns, at least in the short-term.
