KARACHI – The State Bank of Pakistan (SBP) has received around $1.1 billion in its account from the International Monetary Fund (IMF).
IMF Executive Board completed the second review under the Stand-by Arrangement (SBA) in its meeting on April 29, 2024 and approved disbursement of SDR 828 million (around $1.1 billion) for Pakistan.
A day earlier, the Executive Board of the IMF has given the green light for a $1.1 billion loan to Pakistan.
In an official statement released on its website, the IMF stated, “The Executive Board of the International Monetary Fund (IMF) has completed the second and final review of Pakistan’s economic reform program supported by the IMF’s Stand-By Arrangement (SBA). This decision paves the way for an immediate disbursement of SDR 828 million (approximately $1.1 billion), bringing the total disbursements under the arrangement to SDR 2.250 billion (approximately $3 billion).”
Antoinette Sayeh, Deputy Managing Director and Chair, highlighted the progress Pakistan has made in restoring economic stability under the 2023 Stand-By Arrangement (SBA). She emphasized the importance of capitalizing on this stability through continued adherence to sound macroeconomic policies and structural reforms to foster stronger, inclusive, and sustainable growth. Sayeh stressed the need for ongoing external support.
The IMF underscored the appropriateness of the State Bank of Pakistan’s tight monetary policy stance until inflation returns to more moderate levels. It emphasized the importance of further enhancements in the functioning of the foreign exchange market and a market-determined exchange rate to bolster resilience against external shocks and attract financing for growth. Additionally, it called for sustained efforts to rebuild foreign exchange reserves and address undercapitalized financial institutions to ensure financial stability.
The loan, which is anticipated to be disbursed this week, represents the final tranche of a $3 billion Stand-By Arrangement (SBA) secured by Pakistan last summer to avert a sovereign default. This decision follows discussions during the IMF Executive Board meeting in Washington.
IMF board to meet on April 29 to approve 1.1b disbursement for Pakistan
