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The State Bank of Pakistan (SBP) on Wednesday confirmed Pakistan has received $700 million from the International Monetary Fund (IMF) as part of its $3 billion Standby Arrangement with the global lender.
With the release of the latest tranche following the IMF Executive Board approving the first review last week, the total disbursements under the ongoing bailout have reached approximately $1.9 billion, with $1.1 billion remaining in the nine-month program. Inked in July 2023, the bailout would conclude in March, with a second review expected next month after the formation of the new government.
Aimed at providing a policy anchor for addressing domestic and external balances and a framework for financial support from multilateral and bilateral partners, the SBA has seen Pakistan implement several stringent measures, including hefty increases to electricity and gas prices and a base policy rate of 22 percent, intended to curtail inflation.
Also on Wednesday, the central bank announced that the United Arab Emirates had confirmed the rollover of two deposits of $1 billion each. Scheduled to mature this month, the deposits would not remain with the SBP for another year, it added.
Earlier this month, interim Prime Minister Anwaarul Haq Kakar had written to the U.A.E. government requesting a rollover of the $2 billion loan. The deposits are used to prop up the foreign exchange reserves held up by the central bank, and boost investor confidence as the country continues to struggle with its economic affairs.