ISLAMABAD: After a successful meeting of the Executive Board of the IMF on January 11, Pakistan on Wednesday received the 2nd tranche of $700 million loan from the International Monetary Fund (IMF) under the nine-month Stand-By Arrangement (SBA), a Pakistani television channel reported.
As per the January 11 Board decision, an immediate disbursement of around $700 million was advised under the SBA between Pakistan and the monetary body.
Earlier on November 15, 2023, IMF’s optimistic response followed the staff-level agreement that was entertained between the two sides amid more focus on Pakistani’s commitment to further implement the key required reforms.
The agreement was pushed ahead after Pakistani was able to have reforms in advancing fiscal consolidation, expediting cost-reducing reforms in the energy sector, parity in the exchange rate, supporting job creation, etc.
IMF $3 Billion SBA Program
The current IMF program of $3 billion was scheduled in April 2024, with follow-up meetings in June. Later, on July 12, 2023, the international lending body released the first tranche of $1.2 billion, which was again followed by inflows of $ 3 billion (in total) from Saudi Arabia and the UAE, taking Pakistan’s economy out of crisis. The recent tranche would give another push to the country’s economy.
