August 3, 2021 (MLN): Pakistan is likely to receive USD2.8 billion by the end of August from the International Monetary Fund (IMF) under the new allocation of special drawing rights (SDRs) for emerging and developing nations.
The Board of Governors of the IMF approved a general allocation of SDRs equivalent to US$650 billion on August 2, 2021, to boost global liquidity.
“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis. The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis,” IMF Managing Director Kristalina Georgieva said in a statement.
The general allocation of SDRs will become effective on August 23, 2021. The newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.
Earlier, Governor State Bank of Pakistan (SBP), Dr. Raza Baqir, in its analyst call on July 27, had mentioned it expects to receive USD2.8bn from the IMF in Aug-2021 because of the IMF’s planned new global SDR allocation. According to the research report Topline Securities, this will bolster SBP’s foreign exchange reserves by the said inflows to USD20.6bn, the highest in Pakistan’s history.
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