Set the Instant Pot to sauté and heat the olive oil. Add the diced onion and minced garlic. Cook for 2 minutes until the onion softens.
Add the lamb chunks. Brown them for 3 to 4 minutes, stirring a few times.
Stir in the tomato paste and dried thyme. Cook for 1 minute.
Pour in the beef broth and scrape the bottom of the pot. Add the cubed potatoes and sliced carrots. Season with salt and pepper.
Secure the lid and set the Instant Pot to high pressure for 35 minutes. Allow a natural pressure release for 10 minutes, then quick release any remaining pressure.
Open the lid and stir the stew. Taste and adjust salt and pepper if needed. Sprinkle with chopped fresh parsley before serving.