SBP receives $1 billion tranche under new IMF loan programme

The State Bank of Pakistan (SBP) on Friday said it has received a $1 billion tranche from the International Monetary Fund (IMF) under a new programme amid the government winning more financing assurances from China, Saudi Arabia and the United Arab Emirates, reported 24NewsHD TV channel.

A statement from the central bank said that following the IMF Board’s approval of the 37-month $7bn Extended Fund Facility, it received the first tranche of special drawing rights (SDRs) worth 760 million from the Fund today. “These inflows will be reflected in SBP liquid reserves to be released on October 3,” the statement said.

SDRs are international reserve assets created by the IMF in 1969 and are allocated to member states to supplement existing official reserves.

IMF Pakistan Mission Chief Nathan Porter said IMF’s Executive Board on Wednesday approved a new $7bn, 37-month loan agreement for Pakistan that requires “sound policies and reforms” to strengthen macroeconomic stability. IMF officials said Pakistan has staged a “really remarkable” economic turnaround since mid-2023, with inflation down dramatically, stable exchange rates and foreign reserves that have more than doubled.