The State Bank of Pakistan (SBP) announced today the successful receipt of the second installment of SDR 528 million, equivalent to $705.6 million, from the International Monetary Fund (IMF). This disbursement, scheduled to reflect in SBP reserves for the week ending on January 19, 2024, signifies a pivotal milestone in the ongoing financial collaboration between Pakistan and the IMF.
The latest disbursement brings the total disbursements under the stand-by arrangement (SBA) to a substantial $1.9 billion, with the remaining $1.1 billion anticipated after a comprehensive review in February 2024.
As of January 5, 2024, the State Bank of Pakistan’s total reserves stand at $8.15 billion, showcasing the positive impact of the financial support received through the IMF program. Notably, Pakistan secured a $3 billion SBA from the IMF towards the end of FY23, crucially preventing the nation from defaulting on its sovereign debt.
The phased disbursement of the IMF funds, subject to meticulous reviews, follows Pakistan’s successful completion of the first review of the economic reform program on January 11, 2024. This achievement is considered a significant milestone in ensuring the country’s financial stability.
Upon board approval, the IMF highlighted that economic activity in Pakistan has stabilized, though acknowledging that the outlook remains challenging and contingent on the implementation of sound policies. Pakistan’s 9-month SBA aims to provide a robust policy anchor for addressing both domestic and external balances, serving as a framework for continued financial support from multilateral and bilateral partners.
This ongoing financial collaboration with the IMF is instrumental in guiding Pakistan through economic challenges, providing a solid foundation for sustained growth and stability in the region. The country reiterates its commitment to implementing prudent economic policies outlined in the reform program, with the ongoing support of international partners.
