IMF says a staff-level agreement has been reached with Pakistan to release $1.1B

The IMF said on Wednesday that it has reached a staff level agreement with Pakistan.

Should this agreement be confirmed by the IMF's board, $1.1 billion will be released for the indebted South Asian economy, which is also facing a balance of payments crisis.

The money is the last installment of a last-ditch $3 billion rescue package that Pakistan managed to secure last summer, saving the country from sovereign debt default. Islamabad is also looking for an additional long-term rescue.

An agreement has been reached between the IMF team and the Pakistani authorities at the staff level regarding the second and final review of Pakistan's stabilization program, according to a statement released by the IMF.

The announcement also stated that the IMF Executive Board's approval was a prerequisite for this arrangement. Although Pakistan has not yet been added to the IMF's executive board schedule, sources believe board approval is anticipated at some point in April. The arrangement ends on April 11. The agreement follows a five-day review of the loan's fiscal consolidation benchmarks by Pakistani officials and the IMF mission.

In the months since the initial review, Pakistan's economic and financial situation has improved, according to the IMF, with growth and confidence continuing to rebound due to cautious policy management and the restart of inflows from both bilateral and multilateral partners. The IMF said that Pakistan had shown interest in a deal during the review talks, and that talks on a medium-term program are anticipated to begin in the coming months. Pakistan's recently appointed Finance Minister, Muhammad Aurangzeb, stated that Islamabad will seek another long-term bailout.

The extent of the additional funds the administration is requesting has not been made public. In February, Bloomberg revealed that Pakistan intended to request a loan of at least $6 billion.