SBP receives IMF's first tranche of $991.4 million

KARACHI: The State Bank of Pakistan (SBP) on Tuesday night received $1 billion from the International Monetary Fund (IMF) as the first tranche of a bailout package for balance of payment support.

Sources in the SBP confirmed to Business Recorder that the SBP has received IMF first tranche of $991.4 million which is equivalent to SDR 716 million.

The arrival of inflows from the IMF will help strengthen the depleting foreign exchange reserves of the country and ease pressure on the external account.

The Executive Board of the International Monetary Fund (IMF) in its Washington meeting on July 3 approved $6 billion loan for Pakistan under its bailout programme.

Pakistan’s government and the IMF had already signed staff agreement on May 12. The Executive Board of the IMF will give its final nod to the agreement under which Pakistan will receive six billion dollars loan package from the lender in three years under the extended fund facility.

The final budget measures passed by the assembly along with a report on compliance with all prior actions remained key elements in the board’s decision to grant Pakistan’s request for a $6 billion bailout facility.

The government in its budget proposals for the next financial year has added Rs. 357 billion loans from the IMF.

An IMF team will visit Islamabad every three months to review the economic indicators of the country.

The government has already fulfilled all IMF’s conditions before signing of the agreement, sources said.