Meeting in Washington D.C. on February 2nd, the IMF Executive Board is set to deliberate Pakistan's request for its sixth review along with the release a $1 billion tranche under the Extended Fund Facility (EFF).
The SBP Bill and the mini-budget, both of which have now been approved, signal a major win for the Pakistan Tehreek-e-Insaf (PTI) government, which has been steadily fighting for the IMF's loan program, despite vociferous criticisms from the opposition.
Critics of the IMF loan have warned that the required reforms will worsen inflation and further increase taxation, negatively impacting many in the country who are already struggling. Those in favor of the program propose that in the medium term, the reforms will bolster investment in the country and generate 'sustainable economic growth.' This is the 13th IMF bailout for Pakistan.
During a tense senate session yesterday, the SBP bill narrowly passed after a tiebreaker vote from Senate Chairman Sadiq Sanjrani, who voted in favor. Controversially, 12 lawmakers were absent from the session, including eight members from the opposition, who claimed that the vote for the SBP had not been added to the agenda until Friday morning.