WASHINGTON: The Executive Board of International Monetary Fund (IMF) will deliberate upon the $3 billion stand-by arrangement (SBA) reached with Pakistan today (Wednesday).
Although Pakistan wasn’t originally among the subjects listed on the IMF’s website, the external financing issue has been resolved after Islamabad received $2 billion deposit from Saudi Arabia a day earlier.
With Pakistan managing to meet one of the key conditions, the finance ministry says the world’s top lender has now accepted the plan that covers the $8.2 billion gap.
Reports stated Pakistan will get the necessary finances from different sources including Saudi Arabia ($2 billion), the United Arab Emirate ($1 billion) and $500 million each from the World Bank and the Asian Development Bank.
However, the largest share will come from China as Beijing will provide $3.5 billion, a country that is focusing on Pakistan for reviving the stalled Built and Road project – CPEC.
Earlier, Finance Minister Ishaq Dar had expressed the hope that Pakistan would receive over $1billion as first tranche within 24 hours of the IMF Executive Board’s approval.
The staff-level agreement for the stacovers first nine months – from July to March – of the current fiscal year 2023-24 and was hammered out on the very day [June 30] the previous deal under Extended Financing Facility (EFF) was to expire.
Read more: $2b Saudi injection boosts forex reserves: Ishaq Dar
