The International Monetary Fund (IMF) has said that Pakistan’s new $3 billion loan programme would anchor the country’s immediate efforts to stabilise the economy and ensure that the current balance of payments need was fulfilled.
Earlier this week, the global lender’s executive board green-lit the nine-month standby arrangement (SBA) in order “to support the authorities’ economic stabilisation programme”.
The Stand-By Arrangement (SBA) for Pakistan 🇵🇰 comes at a challenging juncture. It aims to stabilize the economy & address the needs of the Pakistani people. Steadfast implementation is critical to address its large financing needs & support the most vulnerable. pic.twitter.com/2BfDQxvih2
— Julie Kozack, IMF (@IMFSpokesperson) July 13, 2023
The board approved the bailout package for the country for an amount of $2.25bn Special Drawing Rights (SDRs) — reserve funds that the institution credits to the accounts of its member nations, the IMF had said in a statement, adding that this amounts to about $3bn, or 111 per cent of Pakistan’s quota.
Subsequently, Finance Minister Ishaq Dar said the first tranche of $1.2 billion was deposited in the central bank, while the “balance amount” of $1.8bn would be handed over after two reviews in November and February.
In a press briefing on Thursday, IMF spokesperson Julie Kozack said the SBA came at a “challenging juncture”.
