Pakistan and IMF Close to Finalizing $6 Billion Bailout Deal
Pakistan and the International Monetary Fund (IMF) are discussing a new short-term standby arrangement (SBA) worth about $2.5bn to get the country through the political transition to the newly-elected government. The options include disbursement of $1.1bn under the 9th review or entering into a new short-term arrangement with upfront disbursement of $1.1bn followed by two-three more reviews for up to $500 million each. The government aims to secure the entire amount of $2.5bn, but may have to increase the petroleum levy and commit to expedited regulatory processes for rebasing electricity tariffs. The IMF has acknowledged Pakistan's swift completion of policy actions and is happy with the government's decisive measures.