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The State Bank of Pakistan (SBP) announced on Tuesday the reception of the final $1.1 billion tranche from the International Monetary Fund (IMF) under the stand-by arrangement.
This disbursement, approved by the IMF on Monday, marks the completion of the second review under the SBA, totaling approximately $3 billion. All executive board members supported the release of the last installment, except India, which abstained.
The IMF emphasized Pakistan’s need to continue policy and reform efforts, ensuring adherence to fiscal targets while safeguarding vulnerable segments from the impact of reforms. Additionally, it stressed the importance of maintaining a market-determined exchange rate and implementing broad structural reforms.
Today, the SBP confirmed the receipt of the tranche from the IMF, totaling SDR 828 million, scheduled to reflect in SBP’s foreign exchange reserves by May 3, 2024.
Prime Minister Shehbaz welcomed the economic stability brought by the IMF’s support, acknowledging the pivotal role of the SBA in preventing default during his predecessor’s tenure. He emphasized the necessity of tough decisions for economic security and expressed optimism about breaking free from the debt cycle.
Acknowledging the IMF’s assistance during challenging times, Shehbaz highlighted the government’s commitment to economic improvement and development.
The IMF’s approval followed PM Shehbaz’s meeting with IMF Managing Director Kristalina Georgieva during the World Economic Forum’s special meeting, reaffirming Pakistan’s dedication to economic recovery.
Last year, the IMF Executive Board approved a nine-month SBA arrangement, disbursing $1.2 billion immediately. Finance Minister Muhammad Aurangzeb indicated Pakistan’s interest in a longer and larger economic bailout package, with IMF support contingent upon the formulation of a new economic program.
Haseeb Abdullah
