KARACHI – Acting Governor of Pakistan’s central bank said the cash-strapped nation will get the $1.17 billion loan tranche from the global lender in six days’ time after final approval from its top board.
Dr Syed shared the positive development while speaking with Bloomberg as Islamabad is eagerly waiting for the release of the first tranche. The Executive Board of the International Monetary Fund (IMF) will meet on August 29 for approving the release of the much-awaited loan tranche.
The acting governor said the country’s forex reserves will shore up to $16 billion by the end of the current fiscal year, as Pakistan’s assets earlier plunged to USD 7.83 billion, the lowest since 2019 amid huge debt payments.
He further mentioned that the South Asian nation is ‘over-financed,’ as of now, after garnering $4 billion of additional financing commitments.
In another interview, the noted economist the SBP chief emphasised that extreme pressures on the country’s foreign exchange reserves will end in the coming months.
Lately, the State Bank of Pakistan left its policy rate unchanged amid signs the nation may be drawing close to an International Monetary Fund loan approval.
Meanwhile, Islamabad has requested an exemption from some targets set by the US-based lender and the executive board will also consider it in the upcoming meeting.
Earlier this month, Finance Minister revealed that Pakistan sent back the signed letter of intent to the International Monetary Fund. A senior official of IMF also revealed that Pakistan completed all prerequisites for the revival of the Extended Fund Facility programme.
Pakistan completes last prior action for release of bailout funds: IMF
