Pakistan received the highly anticipated final tranche of $1.1 billion from the International Monetary Fund (IMF) on Tuesday, as part of the $3 billion standby arrangement, confirmed the State Bank of Pakistan (SBP).
The SBP announced that it had received Special Drawing Rights (SDR) 828 million, equivalent to $1.1 billion, “following the successful completion of the second review by the Executive Board of IMF under Stand By Arrangement (SBA).”
This disbursement will be reflected in SBP reserves for the week ending on May 3, 2024.
Just a day prior, the IMF’s Executive Board concluded the second review under the Stand-By Arrangement (SBA) for Pakistan, thereby bringing the total disbursements under the arrangement to approximately $3 billion.
“The completion of the second and final review reflects the authorities’ stronger policy efforts under the SBA, which have supported the stabilization of the economy and the return of modest growth,” stated the IMF in a press release.
“To transition Pakistan from stabilization to a robust and sustainable recovery, the authorities must persist with their policy and reform endeavors, including strict adherence to fiscal targets,” the statement emphasized.
Pakistan is currently seeking a new long-term and larger IMF loan, with Finance Minister Muhammad Aurangzeb expressing optimism that Islamabad could secure a staff-level agreement on the new program by early July.
Prime Minister Shehbaz Sharif, in a meeting with IMF MD Kristalina Georgieva, reiterated his government’s commitment to revitalizing Pakistan’s economy. During the meeting, held on the sidelines of the World Economic Forum Special Meeting, the prime minister emphasized the implementation of structural reforms, ensuring strict fiscal discipline, and pursuing prudent policies aimed at macroeconomic stability and sustained economic growth.
He expressed gratitude to Georgieva for the IMF’s support in securing the $3 billion Standby Arrangement (SBA) last year, which is now nearing completion.