SBP receives $700m from IMF

January 17, 2024 (MLN): The State Bank of Pakistan (SBP) has received the second installment of SDR 528 million, equivalent to $705.6m from the International Monetary Fund (IMF), the central bank said.

This disbursement will be reflected in SBP reserves for the week ending on January 19, 2024.

Accordingly, this brings the total disbursements under the Stand-By Arrangement (SBA) to $1.9 billion.

The remaining $1.1bn will be received after another review, in February 2024.

As of January 05, 2024, the central bank's total reserves stood at $8.15bn.

To recall, towards the end of FY23, Pakistan secured a $3bn SBA from the IMF, which saved the cash-strapped nation from a soverign debt default.

After the initial $1.2bn received from IMF, the remaining loan was phased over two installments, subject to two reviews.

On January 11, 2024, Pakistan successfully completed the first review of the economic reform program.

Following the board’s approval, the IMF stated that economic activity has stabilized although the outlook remains challenging and dependent on the implementation of sound policies. 

Pakistan’s 9-month SBA aims to provide a policy anchor for addressing domestic and external balances and a framework for financial support from multilateral and bilateral partners.

1/2 #SBP has received SDR 528 million (equivalent to $705.6 million) in value 16th January 2024 from IMF following successful completion of the first review by the Executive Board of IMF under Stand By Arrangement (SBA).

— SBP (@StateBank_Pak) January 17, 2024

Copyright Mettis Link News