Pakistan receives $1.16 billion from IMF as loan programme resumed

KARACHI – Pakistan received proceeds of $1.16 billion from the International Monetary Fund two days after the executive board of the global lender approved revival of long-stalled bailout programme for the South Asian country.

The development was confirmed by the State Bank of Pakistan late Wednesday night on Twitter.

“Today, #SBP has received proceeds of USD 1.16 billion (equivalent of SDR 894 million) after the IMF Executive Board completed the combined seventh and Eight review under the Extended Fund Facility (EFF) for Pakistan,” the Tweet read.

1/2 Today, #SBP has received proceeds of USD 1.16 billion (equivalent of SDR 894 million) after the IMF Executive Board completed the combined seventh and Eight review under the Extended Fund Facility (EFF) for Pakistan.

— SBP (@StateBank_Pak) August 31, 2022

The funds will help improve the foreign exchange reserves held by the central bank “and will also facilitate realization of other planned inflows from multilateral and bilateral sources”.

On August 29, IMF approved the bailout package for Pakistan, in a massive relief to the government as cash strapped country is facing recent floods and economic uncertainty.

Finance Minister Miftah Ismail confirmed the development, saying "Alhamdolillah the IMF Board has approved the revival of our EFF program. We should now be getting the 7th & 8th tranche of $1.17 billion. I want to thank the Prime Minister Shehbaz Sharif for taking so many tough decisions and saving Pakistan from default. I congratulate the nation."

The development comes as the South Asian nation met all prior actions proposed by the global lender. The ruling alliance also faced the wrath of distressed pubic after increasing the petroleum prices.