KARACHI – Pakistan has received much needed $1.2 billion loan installment from the International Monetary Fund (IMF) under the Stand-By Agreement, which will support the country’s foreign exchange reserves and will help the local currency to gain momentum against the dollar.
The crisis-hit country received an amount after IMF’s executive board gave a nod to $3 billion Stand-By Agreement (SBA) as the two sides continued talks for months. Islamabad however reached a staff-level agreement with US based lender, securing a short-term pact.
Following fresh disbursement, Finance Minister Ishaq Dar confirmed that the central bank received the balance and mentioned that other tranches will be released after two reviews.
This much-needed funds will boost the country’s dilapidating foreign exchange reserves, the Finance chief said, saying State Bank reserves climbed by around $4.2 billion this week as $2bn deposit was made by Saudi Arabia and another $1bn received from the United Arab Emirates (UAE).
Dar acknowledged Prime Minister Shehbaz Sharif for playing a crucial role in reaching the deal with the IMF, saying the economic team had extended full support to him during the complicated process.
IMF raises Pakistan s economic growth forecast to 2.5pc for current FY
