The State Bank of Pakistan (SBP) has removed the cash margin requirement (CMR) on imports, effective March 31, 2023. Analysts suggest that this move is aimed at reviving the International Monetary Fund (IMF) loan programme, which has been stalled. The removal of CMR will also support the ease of doing business in Pakistan. The current account deficit in February 2023 narrowed by 86% to $74 million, the smallest since March 2021, due to administrative controls and the depreciation of the rupee, which reduced imports. However, Pakistan is facing a delay in a bailout deal with the IMF, and without an IMF agreement, sovereign default is imminent. Pakistan needs to secure a $1.2 billion tranche and unlock further inflows from other international creditors. The final barrier to reaching an IMF agreement is an assurance from “friendly countries” to finance a balance of payment gap.