September 27, 2024

The State Bank of Pakistan (SBP) has received a $1 billion tranche from the International Monetary Fund (IMF) as part of its $7 billion Extended Fund Facility (EFF). This much-needed financial injection comes at a critical time for Pakistan as it secures additional financing assurances from key allies, including China, Saudi Arabia, and the UAE.

These countries have committed to rolling over a total of $12 billion in loans, providing Pakistan with crucial support as it navigates its ongoing economic challenges. The IMF’s Pakistan mission chief, Nathan Porter, confirmed that the disbursement was approved following Pakistan’s successful fulfillment of the required financing commitments.

In addition to the $1 billion tranche, the IMF Managing Director, Kristalina Georgieva, emphasized the importance of continued economic reforms in Pakistan. She praised Prime Minister Shehbaz Sharif’s efforts in stabilizing the country’s economy, but urged for continued diligence in managing fiscal responsibilities.

The IMF’s next review of Pakistan’s economic performance is scheduled for October 3, 2024, when further assessments of the country’s financial stability and reform progress will take place.

This development marks a significant boost to Pakistan’s financial reserves, with the international community recognizing the country’s efforts to overcome its economic hurdles. The additional assurances from China, Saudi Arabia, and the UAE are expected to further stabilize Pakistan’s economic outlook in the months ahead.