SBP receives $1.1bn from IMF

April 30, 2024 (MLN): The State Bank of Pakistan (SBP) has received the final installment of SDR 528 million, equivalent to around $1.1 billion from the International Monetary Fund (IMF), the central bank said.

This disbursement will be reflected in SBP reserves for the week ending on May 03, 2024.

The said amount will help bolster the foreign exchange reserves of Pakistan. At present, the total foreign exchange reserves stand at around $8bn.

Pakistan’s 9-month SBA, approved by the Executive Board on July 12, 2023, successfully provided a policy anchor to address domestic and external imbalances and a framework for financial support from multilateral and bilateral partners, the statement issued by the Fund said. 

The program focused on necessary fiscal adjustment and maintenance of debt sustainability, protection of critical social spending, buffering external shocks and eliminating FX shortages, making progress on disinflation and furthering progress on structural reforms, focused on energy sector viability, SOE governance, and climate resilience, it added. 

It is crucial to mention that the South Asian nation is seeking a new long-term and larger IMF loan to plug its external financing gaps.

Pakistan has achieved a semblance of economic stability after the 9-month SBA with IMF and is fully committed to entering into an extended program with the Fund to continue on the path of economic growth and development, Finance Minister Muhammad Aurangzeb highlighted during the JP Morgan seminar on "Pakistan: Economic Policy Outlook".

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