The International Monetary Fund (IMF) staff and the Pakistani authorities have reached a staff-level agreement on policies to be supported by a Stand-By Arrangement (SBA).
Key points
- The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.
- The new SBA will support the authorities’ immediate efforts to stabilize the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners.
- The new SBA will also create space for social and development spending through improved domestic revenue mobilization and careful spending execution to help address the needs of the Pakistani people.
Stand-by Arrangement (SBA)
- The Stand-by Arrangement (SBA) provides short-term financial assistance to countries facing balance of payments problems.
- All member countries facing actual or potential external financing needs can avail this facility. Most often used by advanced and emerging market countries, but low-income countries sometimes use the SBA together with the Standby Credit Facility (SCF).
- Through the years, the SBA has been upgraded to be more flexible and responsive to countries’ needs.
- It typically covers a period of 12–24 months, but not more than 36 months.
