Pakistan has received the next installment of $700 million from the International Monetary Fund (IMF). The IMF's Executive Board had approved the economic review last week.
Under the $3 billion standby arrangement with the IMF, Pakistan has received the next installment of $705.6 million from the global lender.
1/2 #SBP has received SDR 528 million (equivalent to $705.6 million) in value 16th January 2024 from IMF following successful completion of the first review by the Executive Board of IMF under Stand By Arrangement (SBA).— SBP (@StateBank_Pak) January 17, 2024
State Bank of Pakistan officials confirmed receiving the amount to Samaa TV. The amount released to Pakistan will be $1.9 billion, the officials said, adding that after the last economic review, Pakistan will get another $1.1 billion.
The central bank confirmed that this disbursement will be reflected in SBP reserves for the week ending on January 19.
On January 11, in a welcome sign, the Executive Board of the International Monetary Fund (IMF) gave its nod for the initial economic assessment of Pakistan, paving the way for the release of the next instalment of $700 million to Pakistan, as confirmed by the Ministry of Finance.
The approved amount is part of the standby arrangement totalling $3 billion between Pakistan and the IMF. Notably, Pakistan has already received $1.2 billion under this nine-month program.
The latest approval signals a continued financial partnership, with an additional $1.1 billion set to be disbursed upon the completion of the last economic review.
The IMF program has been crucial in helping Pakistan stabilize its economy after a period of turmoil. The country's foreign exchange reserves have increased significantly, inflation has come down, and the budget deficit has been reduced.
The Pakistani government has pledged to continue implementing reforms under the IMF program, including measures to improve tax collection, strengthen the financial sector, and reduce the budget deficit. These reforms are essential for achieving sustainable economic growth and improving the lives of all Pakistanis.