Overview
- Pakistan and the IMF have reached a staff-level agreement that would release $1.2 billion after executive board approval, including $1 billion under the EFF and $200 million via the RSF, bringing total disbursements under the two facilities to about $3.3 billion.
- Finance Minister Muhammad Aurangzeb projects 3.5% GDP growth for the current fiscal year after reporting 3% expansion in the last fiscal year.
- He reports single-digit inflation and a more dovish stance by the State Bank of Pakistan.
- Foreign exchange reserves currently cover roughly two and a half months of imports, and all three major rating agencies have upgraded Pakistan’s credit outlook.
- He highlights 24 joint projects signed in Beijing under CPEC’s second phase and outlines plans for a yuan-denominated green bond this year followed by at least a $1 billion international bond.