Pakistan Secures First Tranche of IMF Loan
- Pakistan received the first tranche of the International Monetary Fund’s (IMF) loan.
- The State Bank of Pakistan (SBP) received SDR 760 million, equivalent to USD 1,026.9 million.
- The funds will be reflected in SBP’s liquid reserves, set to be released on October 3, 2024.
KARACHI: Pakistan has successfully received the first tranche of the International Monetary Fund’s (IMF) loan following the approval of a 37-month Extended Fund Facility (EFF) amounting to US$7 billion.
The State Bank of Pakistan (SBP) announced that it received SDR 760 million—equivalent to USD 1,026.9 million—as the initial payment from the IMF on Friday. These funds will be reflected in SBP liquid reserves, which are set to be released on Thursday, October 3, 2024.
The IMF Executive Board approved Pakistan’s EFF arrangement on September 25, which includes an initial installment of US$1.1 billion due by September 30, carrying an interest rate below 5 percent, according to sources.
The primary objective of the 37-month EFF arrangement is to support Pakistan’s economic stability and growth, focusing on sustainable public finances, reduced inflation, and strengthened external buffers.
Earlier, on September 13, Finance Minister Muhammad Aurangzeb confirmed that all negotiations with the IMF were amicably settled, stating, “Alhamdulillah, the Prime Minister is grateful to the IMF negotiation team and related institutions.” He indicated that the economy is now moving towards growth after achieving stabilization.
The minister also mentioned that the finalization of the agreement would take place during the IMF board meeting later this month, adding that a reduction in the policy rate could enhance investment and business activities, leading to job creation.
Meanwhile, Prime Minister Shehbaz Sharif expressed satisfaction with the approval of the IMF package of US$7 billion for Pakistan. In a statement from the PM Office, he noted that the economic reforms process is in motion and that efforts will continue to achieve the goals of economic growth and development after establishing financial stability.
