IMF Approves $700 Million Loan for Pakistan’s Economy

In a significant development, the International Monetary Fund’s (IMF) Executive Board has given the green light for a 700 million loan tranche to support Pakistan’s economic reform program. This injection of funds comes after the successful completion of the first review of Pakistan’s economic performance under the standby arrangement (SBA) with the IMF.

The SBA, totaling billions, is designed to assist Pakistan in meeting its external financing needs, amounting to billions. The initial tranche of .2 billion has already been disbursed, with the remaining two tranches contingent upon successful reviews. With this latest approval, the total disbursements under the SBA now amount to .9 billion, providing a crucial boost to Pakistan’s forex reserves.

Financial expert Dr. Khaqan Hasan Najeeb stressed how important it is to successfully complete the first review. He mentioned that the injection of 0 million along with support from multiple sources, will not just boost the reserves of the state bank but also make financial markets more confident.

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Pakistan, facing the specter of default as the Pakistan Democratic Movement’s term was concluding last year, found reprieve by entering into the SBA with the IMF. The State Bank of Pakistan currently holds forex reserves of .1 billion, contributing to the country’s overall reserves of .2 billion after repaying a million debt.


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The completion of the first review is critical, but more challenges lie ahead. As the second review approaches in February, Pakistan must fulfill all specified targets, performance criteria, and benchmarks by December 31 to secure the final tranche. Pakistan needs to keep working together with the IMF to handle its economic challenges well. The recent money boost is likely to make Pakistan’s money reserves the highest they’ve been in six months.