IMF approves 700 million dolor’s loan tranche for Pakistan.

On Thursday, the Executive Board of the International Monetary Fund (IMF) concluded the first review and authorized an immediate disbursement of SDR 528 million (approximately US$ 700 million) to Pakistan. This brings the total disbursements under the Stand By Arrangement (SBA) to US$ 1.9 billion.

In a statement posted on the microblogging site X, formerly known as Twitter, Pakistan’s Ministry of Finance announced, “The Executive Board of IMF completed the 1st review of Pakistan’s economic reform program supported by IMF’s Stand By Arrangement (SBA) today. The approved amount is part of the standby arrangement totaling $3 billion between Pakistan and the IMF. Notably, Pakistan has already received $1.2 billion under this nine-month programme.

This recent approval indicates a sustained financial partnership, with an additional $1.1 billion slated for disbursement upon the completion of the final economic review.

The IMF program has played a crucial role in assisting Pakistan in stabilizing its economy after a period of turbulence. The country’s foreign exchange reserves have witnessed a significant increase, inflation has decreased, and the budget deficit has been brought under control.

The Pakistani government has committed to continuing the implementation of reforms outlined in the IMF program. These measures include initiatives to enhance tax collection, fortify the financial sector, and reduce the budget deficit. Such reforms are deemed essential for achieving sustainable economic growth and enhancing the well-being of all Pakistani citizens.