The State Bank of Pakistan (SBP) recently received its first installment of around $1.027 billion from the International Monetary Fund (IMF) as part of a larger loan agreement. This payment came after the IMF Executive Board approved a 37-month Extended Fund Facility (EFF), totaling $7 billion.
In a brief statement, the SBP confirmed that it received 760 million Special Drawing Rights (SDR), equivalent to approximately $1.027 billion, from the IMF. This money will soon be included in the SBP’s liquid reserves and is expected to be officially released on October 3, 2024. This financial support is a crucial step in stabilizing Pakistan’s economy, which has faced significant challenges in recent years.
The loan installment marks the beginning of a larger financial package aimed at helping Pakistan navigate its economic difficulties. By boosting the country’s foreign reserves, this support is intended to provide relief from the ongoing economic pressure and set the foundation for future growth.
Earlier, on September 13, Finance Minister Muhammad Aurangzeb had announced that all negotiations with the IMF had been successfully concluded. He expressed gratitude on behalf of Prime Minister and praised the IMF negotiation team for their cooperation.
The minister also noted that the Pakistani economy is now moving from a phase of stabilization towards growth, signaling a more positive outlook for the country’s financial future.
This financial package comes at a time when Pakistan is facing a variety of economic challenges, including inflation, rising debt, and a shortage of foreign reserves.
The support from the IMF is seen as a lifeline, helping the country maintain economic stability while working towards long-term growth and development. The government remains optimistic that with these funds, Pakistan will be better positioned to implement reforms and address its economic issues, paving the way for a more stable and prosperous future.
