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In a recent announcement, the Ministry reported the completion of the first review by the IMF’s Executive Board and the disbursement of $528 million in special drawing rights, bringing the total disbursements under the SBA (Stand-By Arrangement) to $1.9 billion.
The CEO of Topline Securities, Mohammad Sohail, stated that the IMF funding, coupled with recent inflows from multilateral lenders, is expected to further stabilize the Pakistani rupee, which has shown relative stability in recent months. This tranche is anticipated to facilitate rollovers from allied countries like the United Arab Emirates, China, and Saudi Arabia, easing external debt repayment pressure.
In 2023, the IMF Executive Board approved a nine-month arrangement with Pakistan to support its economic stabilization program. The approval allowed for an immediate disbursement of $1.2 billion, with the remainder phased over the program’s duration, subject to quarterly reviews. The current IMF program is set to conclude in the second week of April, with the initial tranche of $1.2 billion released in July.
Following a Staff-Level Agreement reached in November 2023, the approval by the IMF’s Executive Board now positions Pakistan to potentially receive the remaining amount in March under the $3 billion SBA.
Despite facing high inflation at 29.7% for December, Pakistan’s caretaker Finance Minister Shamshad Akhtar acknowledged the need for a new agreement with the IMF to support the economy, emphasizing the country’s historical reliance on IMF support to address economic challenges.
