The executive board of the International Monetary Fund (IMF) on Thursday approved the release of $700 million for Pakistan.
The money is being released as part of the nine-month-long $3 billion Stand By Arrangement (SBA) the Fund had agreed with Pakistan last July.
The Ministry of Finance, in a message posted on the social media site 'X', formerly known as Twitter, stated that the executive board of the Fund had completed the first review of Pakistan's economy and economic trajectory and allowed the immediate disbursement of SDR 528 million (around $700 million).
The Executive Board of the International Monetary Fund (IMF) completed the 1st review and allows for an immediate disbursement of SDR 528 million (around US$ 700 million) bringing the total disbursements under the SBA to US$ 1.9 billion.
— Ministry of Finance, Government of Pakistan (@Financegovpk) January 11, 2024
This means that Pakistan has thus far received around $1.9 billion from the Fund, nearly two-thirds of the sum agreed to under the SBA.
In November 2023, the IMF team had completed a technical review of the measures adopted by Pakistan to stabilise the economy and reached a staff-level agreement with Islamabad.
The IMF team was then supposed to present its report to IMF's executive board for a review and approval of a tranche worth $700 million.
Upon reaching the agreement, the IMF said that they support the commitment of Pakistani authorities to advance the planned fiscal consolidation, accelerate cost-reducing reforms in the energy sector, complete the return to a market-determined exchange rate, and pursue state-owned enterprise and governance reforms to attract investment and support job creation, while continuing to strengthen social assistance.
IMF team lead Nathan Porter, in a statement issued upon completion of the technical review, stated that Pakistan remains susceptible to significant external risks, including the intensification of geopolitical tensions, resurgent commodity prices, and the further tightening in global financial conditions.
He stressed that efforts to build resilience need to continue.