IMF board approves $700m loan for Pakistan

The IMF Executive Board has completed the first review and approved the release of second tranche of $700 million for Pakistan’s dollar-starved economy under the $3 billion Standby Arrangement (SBA) Program.

The finance ministry Thursday night issued a brief statement stating the IMF Executive Board had completed the first review of Pakistan’s economic reform program supported by the IMF’s SBA.

With the injection of $700 million, the foreign exchange reserves would come close to $9 billion in next few days.

“The Board’s approval allows for an immediate disbursement of SDR528 million (around US$700 million) bringing the total disbursements under the SBA to $1.9 billion” added the statement.

Pakistan has assured the IMF in writing that under the SBA programme, the government will return to a market-determined exchange rate and rebuilding of forex reserves.