Home » IMF Board approves $700M loan for Pakistan

IMF Board approves $700M loan for Pakistan

by admin
0 comment

The Executive Board of the International Monetary Fund (IMF) has successfully concluded the initial review within Pakistan’s Stand-By Arrangement (SBA), authorizing an immediate disbursement of approximately $700 million to the country. The Ministry of Finance, in a post on X, disclosed this development, highlighting that the latest disbursement contributes to a cumulative total of $1.9 billion disbursed under the SBA.

In response to this announcement, Mohammed Sohail, CEO of Topline Securities, expressed optimism about the positive impact of the IMF funding coupled with recent inflows from multilateral lenders on the stability of the Pakistani Rupee. He noted that the Rupee has exhibited relative stability over the past few months and anticipated that this new tranche would not only support the currency but also facilitate obtaining rollovers from friendly nations, thereby alleviating external debt repayment pressures.

The agreement for the first review under Pakistan’s Stand-By Arrangement was initially reached in November between IMF staff and Pakistani authorities, contingent on approval from the IMF’s Executive Board. At that time, the IMF outlined that the agreement underscores the authorities’ commitment to advancing planned fiscal consolidation, expediting cost-reducing reforms within the energy sector, completing the transition to a market-determined exchange rate, and pursuing reforms in state-owned enterprises and governance. These efforts aim to attract investment, support job creation, and simultaneously strengthen social assistance initiatives.

The successful completion of this review and the subsequent disbursement represent positive strides for Pakistan, providing financial support to address economic challenges and implement key reforms outlined in the agreement with the IMF. The injection of funds is expected to bolster the country’s foreign exchange reserves, support economic stability, and pave the way for further collaboration with friendly nations to manage external debt obligations effectively.

You may also like

Leave a Comment

Smart News is a news website that serves as your go-to source for the latest and most reliable updates on technology, telecom, business, sports, auto, education, real estate, and entertainment news in Pakistan. We are dedicated to providing you with comprehensive coverage across various sectors, ensuring you stay informed about all the happenings in the country.

Send Us