KABUL (Pajhwok): Pakistan Finance Minister Ishaq Dar said on Thursday that the International Monetary Fund (IMF) had transferred $1.2 billion to the central bank’s account.
He made the remarks while addressing the media a day after the global money lender approved a $3 billion loan agreement for Pakistan, unlocking crucial funding for the troubled economy.
The board approved the bailout package for the country for an amount of $2.25bn Special Drawing Rights (SDRs) — reserve funds that the institution credits to the accounts of its member nations, the IMF said in a statement. This amounts to about $3bn, or 111 per cent of Pakistan’s quota, it said.
In his address, Dar noted that the IMF’s Executive Board had approved the standby-agreement with Pakistan (SBA). He also noted that this was a nine-month programme under which Islamabad would receive $3bn.
He said that when the SBA was finalised, it was decided that $1.2bn would be given upfront while the “balance amount” of $1.8bn would be handed over after two reviews in November and February.
“So in that regard, I want to share the information that the upfront payment of $1.2bn, the IMF has transferred it to the State Bank of Pakistan’s (SBP) account.”
He said that the funds would shore up Pakistan’s foreign exchange reserves, noting that this would also include the $1bn transferred by the United Arab Emirates a day earlier.
International Monetary Fund’s executive board approved $3 billion stand-by arrangement for Pakistan.
On Wednesday, IMF said the Executive Board of the International Monetary Fund (IMF) approved a 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of SDR2,250 million (about $3 billion, or 111 percent of quota) to support the authorities’ economic stabilization program.
Pakistan’s economic reform program aims to support immediate efforts to stabilize the economy and guard against shocks while creating the space for social and development spending to help the people of Pakistan.
Pakistan’s Prime Minister Shahbaz Sharif tweeted: “The approval of Stand-by Agreement of $3 billion by the IMF’s Executive Board a little while ago is a major step forward in the government’s efforts to stabilise the economy and achieve macroeconomic stability. It bolsters Pakistan’s economic position to overcome immediate- to medium-term economic challenges, giving next government the fiscal space to chart the way forward.”
This milestone, which was achieved against the heaviest of odds & against seemingly impossible deadline, could not have been possible without excellent team effort. I would commend Finance Minister Ishaq Dar & his team at the Ministry of Finance for their hard work. My special thanks are also due to @KGeorgieva, MD of IMF and her team for their support & cooperation.
sa/ma
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