By Pakistan has secured $1.1 billion from the International Monetary Fund (IMF) in the last tranche of the $3 billion Stand-By Arrangement (SBA), the State Bank of Pakistan (SBP) disclosed on Tuesday.
According to Business Recorder, the development follows the IMF’s recent completion of its final review of Pakistan’s economic reform program, which was supported by the 9-month SBA, allowing for the immediate disbursement of $1.1 billion.
In a statement, the SBP announced, “Accordingly, SBP has received SDR 828 million (approximately US$ 1.1 billion) on April 29, 2024, in its account from IMF. The amount shall be reflected in SBP’s foreign exchange reserves for the week ending on May 3, 2024.”
As of April 19, the central bank’s foreign exchange reserves stood at $7.981 billion.
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Prime Minister Shehbaz Sharif welcomed the disbursement, stating that it would contribute to greater economic stability in Pakistan. He stressed the significance of the SBA in preventing the nation from defaulting on its external liabilities.
With the SBA concluded, Pakistan is now setting its sights on securing a larger and more extensive Extended Fund Facility (EFF) under the IMF program to achieve macroeconomic stability.
During a meeting with IMF Managing Director Kristalina Georgieva on Sunday, Prime Minister Shehbaz Sharif reiterated his government’s commitment to revitalising Pakistan’s economy. He informed Georgieva of his directive to the financial team, led by Finance Minister Muhammad Aurangzeb, to implement structural reforms, maintain fiscal discipline, and pursue prudent policies to ensure macroeconomic stability and sustained economic growth.
Both parties discussed the possibility of Pakistan entering into another IMF program to consolidate the gains made in the past year and maintain a positive economic growth trajectory.
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