Tag: IMF loan for Pakistan

  • State Bank confirms Pakistan has received initial $1.03 billion tranche from IMF

    State Bank confirms Pakistan has received initial $1.03 billion tranche from IMF

    The State Bank of Pakistan (SBP) announced on Friday that it has received the much-anticipated first tranche of Special Drawing Rights (SDR) worth 760 million, equivalent to USD 1.03 billion, from the International Monetary Fund (IMF).

    In a statement, the SBP said, “Following the approval of the IMF Executive Board of a 37-month Extended Fund Facility amounting to US$7 billion, the State Bank of Pakistan (SBP) has received the first tranche of SDR 760 million (equivalent to USD 1.03 billion) from the IMF today.”

    The central bank confirmed that these inflows would be reflected in the SBP’s liquid reserves, which are scheduled to be released on Thursday, October 3, 2024.

    The IMF’s Executive Board granted approval for the 37-month, $7 billion Extended Fund Facility (EFF) for Pakistan on Wednesday, marking a significant financial lifeline for the country.

    Pakistan and the IMF initially reached a staff-level agreement on the EFF, worth SDR 5,320 million (roughly USD 7 billion), on July 12, 2024, paving the way for today’s disbursement.

  • IMF Board to review $7 billion loan programme for Pakistan on September 25

    IMF Board to review $7 billion loan programme for Pakistan on September 25

    The International Monetary Fund’s Executive Board is expected to take Pakistan’s 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion on agenda on September 25.

    Kozack in a press briefing on Thursday, said that the discussion regarding Pakistan’s loan approval is taking place following Pakistan’s receipt of the necessary financing assurances from “its development partners.”

    The spokesperson of the global lender further said that economic stability in Pakistan has been supported by consistent policymaking, which has resulted in the resumption of growth and an increase in the country’s forex reserves.

    “The new EFF arrangement follows the successful implementation of the nine-month standby arrangement in 2023,” added Kozack.

    Following the development, Finance Minister Muhammad Aurangzeb expressed his gratitude to all relevant institutions, Prime Minister Shehbaz Sharif’s team, and the IMF negotiators.

    The debt-hit country reached a staff-level agreement with the IMF in July, but board approval for the 37-month programme had been pending since then. The delay, which was resolved today with the IMF Executive Board adding Pakistan to its agenda, had fueled speculation about whether Pakistan had failed to meet the IMF’s bailout conditions.

  • IMF to continue talks on Pakistan’s economic reform goals

    IMF to continue talks on Pakistan’s economic reform goals

    The International Monetary Fund (IMF) remains engaged in discussions with Pakistan on policy goals and actions to establish a medium-term, home-grown reform programme that could be supported under the Extended Fund Facility (EFF) arrangement.

    Julie Kozack, Director of the Communications Department at the IMF, highlighted this in a recent press briefing. She emphasised that the reform programme under consideration aims to enhance economic credibility through the consistent application of sound policies.

    The objective is to transition Pakistan from economic stabilisation to robust, inclusive, and resilient growth, ultimately improving the living standards of the Pakistani people.

    The IMF also noted significant progress towards a staff-level agreement with Pakistan.

    Addressing a query about the recent mission to Pakistan, Kozack stated, “Since our mission to Pakistan from May 13 to May 23, our staff has visited Islamabad. We will continue to discuss policy goals and actions that could form the basis of a medium-term, home-grown reform programme for Pakistan that could be supported under the EFF arrangement with the IMF.”

    Regarding the prior actions and the 2024-25 budget, she mentioned that discussions between the IMF team and Pakistani authorities are ongoing and that further information would be communicated in due course.

    Kozack further elaborated on the 2023 Stand-by Arrangement (SBA) for Pakistan, explaining that its goal is to return to stability and to maintain, broaden, and extend this stability to establish a foundation for sustainable growth.