IMF board approves $700mln loan for Pakistan

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) on Thursday completed the first review of Pakistan’s economic reform programme supported by its Stand-By Arrangement (SBA), ARY News reported, quoting the finance ministry.

“The Board’s approval allows for an immediate disbursement of SDR 528 million (around US$ 700 million), bringing the total disbursements under the SBA to US$ 1.9 billion,” a Finance Ministry news release said.

The IMF’s nod follows the staff-level agreement reached between the Fund and Pakistan on November 15, 2023, emphasizing the nation’s commitment to implementing key reforms.

The IMF executive board’s approval came after continued efforts of caretaker Finance Minister Shamshad Akhtar and Army Chief General Asim Munir.

The current IMF program of $3 billion is scheduled to end in the second week of April 2024, with around $1.8 billion remaining un-disbursed. The Fund released $1.2 billion first tranche in July.

The Executive Board of the International Monetary Fund (IMF) completed the 1st review and allows for an immediate disbursement of SDR 528 million (around US$ 700 million) bringing the total disbursements under the SBA to US$ 1.9 billion.

— Ministry of Finance, Government of Pakistan (@Financegovpk) January 11, 2024

With the approval of the IMF board, Pakistan will get an installment of about 700 million US dollars. The finance ministry officials said Pakistan has achieved all IMF targets and hopefully will be able to get the required results. The officials said that Pakistan strictly implemented the economic reforms.

It is pertinent to mention here that on 16^th November last year, Pakistan and IMF reached a staff-level agreement on the first review under Pakistan’s SBA.

The agreement supports the authorities’ commitment to advance the planned fiscal consolidation, accelerate cost-reducing reforms in the energy sector, complete the return to a market-determined exchange rate, and pursue state-owned enterprise and governance reforms to attract investment and support job creation, while continuing to strengthen social assistance.