UPDATE 1-IMF says it reaches a staff level agreement with Pakistan to disburse $1.1 bln

(Recasts with IMF staff level agreement)

By Ariba Shahid and Asif Shahzad

ISLAMABAD, March 20 (Reuters) – Pakistan and the International Monetary Fund on Wednesday reached a staff level agreement which, if approved by its board, will disburse $1.1 billion for the debt-ridden South Asian economy, the global lender said.

The funds are the final tranche of a last-gasp rescue package Pakistan had secured last summer, which averted a sovereign debt default.

The IMF mission held meetings with Pakistani officials in Islamabad during a five-day visit to review the fiscal consolidation benchmarks set for the loan.

The review talks were concluded on late on Tuesday.

“The IMF team has reached a staff-level agreement with the Pakistani authorities on the second and final review of Pakistan’s stabilization program supported by the IMF’s US$3 billion (SDR2,250 million) SBA approved in January 2024,” the IMF said in a statement.

“This agreement is subject to approval by the IMF’s Executive Board, upon which the remaining access under the SBA, US$1.1 billion (SDR 828 million), will become available,” it said.

(Reporting by Asif Shahzad in Islamabad and Ariba Shahid in Karachi; editing by Miral Fahmy)

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