Pakistan’s financial markets express unwavering confidence in the forthcoming approval of the second tranche, valued at $700 million, by the International Monetary Fund executive board. Post-approval, the subsequently elected government is anticipated to secure a larger and longer-term loan programme from the IMF to stimulate economic growth, liberalise imports, and generate essential job opportunities. Habib said, “IMF is happy with the performance of the caretaker government in the review.”Anticipation is high for Pakistan to secure yet another IMF loan programme, potentially valued at $6-8 billion and lasting at least three years. The new IMF loan programme is expected to support the economy, allowing a slight widening of the current account deficit to sustainable levels. With optimism surrounding the next IMF loan programme, analysts project continued outstanding performance in the capital and financial markets throughout 2024.

Source: The Express Tribune January 10, 2024 15:45 UTC