ISLAMABAD: The State Bank of Pakistan (SBP) said on Wednesday it had received $1.3 billion from the International Monetary Fund (IMF) following the lender’s approval of the latest disbursements under two financing arrangements.
In a post on X, the central bank said, “The IMF Executive Board completed the third review under the Extended Fund Facility (EFF) in its meeting held on May 8 and approved the disbursement of SDR 760 million for Pakistan. Furthermore, the IMF Executive Board has also approved the disbursement of the second tranche of SDR 154 million under the Resilience and Sustainability Facility (RSF).”
“Accordingly, SBP has received SDR 914 million (equivalent to about US$ 1.3 billion) under the EFF and RSF in value May 12 from the IMF,” it said.
It further added that the amount would be reflected in the country’s foreign exchange reserves for the week ending on May 15.
Earlier, the IMF approved the latest review of Pakistan’s economic reform programme, paving the way for the release of nearly $1.1 billion under the Extended Fund Facility (EFF) and an additional $220 million through the Resilience and Sustainability Facility (RSF). With this latest tranche, total disbursements under both programmes have climbed to approximately $4.8 billion.
While announcing the funding approval, the IMF said the support would help strengthen Pakistan’s short-term economic position, but cautioned that the external outlook remains uncertain. In its post-review statement, the Fund warned that Pakistan’s recent economic gains could still face risks from rising global instability, particularly due to spillover effects from the ongoing conflict in the Middle East.
“The authorities’ strong policy implementation, despite the Middle East conflict, has helped preserve economic stability and improve financing as well as external sector conditions,” the IMF said.
According to IMF, shocks stemming from the Middle East war highlighted the need to preserve strong policies and continue structural reforms aimed at achieving durable long-term growth.
IMF Deputy Managing Director and Acting Chair Nigel Clarke also stressed the risks arising from the external situation and the need for continued policy discipline. “Amid a more challenging and highly uncertain external environment since the onset of the war in the Middle East, Pakistan needs to maintain strong macroeconomic policies while accelerating reform efforts, which are critical to managing further shocks and fostering higher sustainable medium-term growth,” he said.
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