The IMF board approves a $700 million loan tranche for Pakistan

ISLAMABAD: After completing its initial assessment of Pakistan’s economic reform plan, which is backed by a $3 billion Stand-By Arrangement (SBA), the International Monetary Fund (IMF) approved the immediate transfer of $700 million on Thursday.

The finance ministry reports that the SBA has disbursed a total of $1.9 billion after the IMF’s first review was completed and Rs528 million in special drawing rights were paid.

The government further stated that the tranche’s payment might offer much-needed financial support.
It is anticipated that the $3 billion IMF program will end in the second week of April. The initial payment of $1.2bn was released in July.

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Regarding the first review under Pakistan’s SBA, a personnel-Level Agreement was concluded in November 2023 between IMF personnel and Pakistani authorities. This arrangement required the fund’s permission.

Under the $3 billion SBA, Pakistan is anticipated to get the remaining sum in March.

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However, the population was already aware, according to acting Finance Minister Shamshad Akhtar, that a fresh deal with the IMF was required to strengthen the country’s economy.

Pakistan will never be able to bid the lending agency farewell. Despite severe conditions, Pakistan is still dealing with ever increasing inflation of 29.7 per cent for December from 29.2pc in the preceding month.