The State Bank of Pakistan (SBP) on Tuesday (July 9) night received someone billion dollars from the International Monetary Fund (IMF) as the first tranche of a bailout package for balance of payment support.
Sources in the SBP confirmed to Business Recorder that the SBP has received IMF first tranche of $991.4 million which is equivalent to SDR 716 million. The arrival of inflows from the IMF will help strengthen the depleting foreign exchange reserves of the country and ease pressure on the external account.
Earlier, the IMF board had approved six billion bailout for Pakistan in three years under the extended fund facility. Under the agreement, Pakistan will get six billion dollars in three years, while an additional amount of two to three billion dollars may likely come from World Bank and Asian Development Bank on less interest rate. The program aims to support the authorities’ strategy for stronger and more balanced growth by reducing domestic and external imbalances, improving the business environment, strengthening institutions, increasing transparency, and protecting social spending.
The government has already fulfilled all IMF’s conditions before signing of agreement. The government in its budget proposals for the next financial year has added Rs. 357 billion loan from the IMF.
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27 September, 2019