ISLAMABAD: The International Monetary Fund’s executive board is scheduled to meet on April 29 to consider the approval of $1.1 billion in funding for Pakistan, as announced on Wednesday by the IMF.

This funding represents the second and final installment of a $3 billion Stand-By Arrangement (SBA) that Pakistan secured last summer to prevent a sovereign default, and which is set to expire this month.

Pakistan, a South Asian nation, is now looking to secure a new, larger IMF loan on a long-term basis. Muhammad Aurangzeb, the Finance Minister of Pakistan, has indicated that Islamabad could reach a staff-level agreement on the new program by early July.

The government of Pakistan is aiming for a loan that spans at least three years to support macroeconomic stability and implement long-awaited, albeit challenging, structural reforms. However, Aurangzeb has not disclosed the specific size of the program being sought.

While Islamabad has not yet formally requested the loan, discussions are already underway between the IMF and the Pakistani government.

If successful, this would mark Pakistan’s 24th bailout from the IMF.

Pakistan’s economy, valued at $350 billion, is grappling with a persistent balance of payment crisis, as it faces nearly $24 billion in debt and interest payments in the upcoming fiscal year—three times the amount held in its central bank’s foreign currency reserves.

According to Pakistan’s finance ministry, the economy is expected to grow by 2.6% in the current fiscal year ending in June, with average inflation projected to reach 24%, a slight improvement from 29.2% in fiscal year 2023/2024. Inflation surged to a record high of 38% last May.