IMF Approves Release Of Final $1.1bn SBA Tranche

The international lender has already released $1.9bn to Pakistan under the agreement. 

IMF Approves Release Of Final $1.1bn SBA Tranche

The Executive Board of the International Monetary Fund (IMF) has granted approval for the final $1.1 billion tranche for Pakistan under the $3 billion stand-by arrangement (SBA).

The international lender said in a statement issued on its website on Monday that "the Executive Board of the International Monetary Fund (IMF) completed the second and final review of Pakistan's economic reform program supported by the IMF's Stand-By Arrangement (SBA)".

"The Board’s decision allows for an immediate disbursement of SDR 828 million (around $1.1 billion), bringing total disbursements under the arrangement to SDR 2.250 billion (about $3 billion)." 

“Pakistan has made headway in restoring economic stability as a result of its committed policy initiatives under the 2023 Stand-By Arrangement (SBA). External pressures have lessened, moderate growth has resumed, and inflation, though still high, is starting to drop. Pakistan should make the most of its hard-won stability and continue to implement good macroeconomic policies and structural reforms to achieve stronger, inclusive, and sustainable growth, even in light of the enormous difficulties that lie ahead. Ongoing outside assistance will also be essential,” said Chair and Deputy Managing Director Antoinette Sayeh.

This is the third and final installment of a $3 billion stand-by arrangement (SBA) with the IMF that it obtained last summer in order to prevent a sovereign default and that is set to expire this month. 

Following today's IMF Executive Board meeting in Washington, which addressed Pakistan's request for the release of money, the last tranche was authorized. 

Under the terms of the deal, the international lender has already given Pakistan $1.9 billion. 

It is pertinent to mention here that the country is seeking a new long-term Extended Fund Facility (EFF) after the expiry of the $3 billion SBA.