Press Release: IMF Approves Nine-Month Extension of Stand-By Arrangement for Pakistan
IMF News, December 27, 2010
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- Press Release: IMF Approves Nine-Month Extension of Stand-By Arrangement for Pakistan
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- Published: December 27, 2010
Executive Board decision
- The Executive Board of the International Monetary Fund (IMF) approved—on a lapse-of-time basis1—a nine-month extension of Pakistan’s Stand-By Arrangement (SBA), to September 30, 2011.
- Footnote text preserved: "1 The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions."
Purpose and conditionality of the extension
- The extension will provide time for the Pakistani authorities to:
- complete the reform of the General Sales Tax,
- implement measures to correct the course of fiscal policy, and
- amend the legislative framework for the financial sector.
- IMF staff is continuing its dialogue with the Pakistani authorities on the program’s fifth review.
Background and financing history of the SBA
- A 23-month SBA in an amount equivalent to SDR 5.1685 billion (about US$7.61 billion) was originally approved on November 24, 2008 (see Press Release No. 08/303).
- On August 7, 2009 the SBA was augmented to SDR 7.2359 billion (about US$10.66 billion) and extended through December 30, 2010 (see Press Release No. 09/281).
- Following the completion of the fourth review in May 2010, disbursements under the arrangement reached SDR 4.936 billion.
International Monetary Fund press release No. 10/515, December 27, 2010.