ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) approved on Wednesday the new 3 billion dollars Stand-By Arrangement for Pakistan, which immediately allows the disbursement of about 1.2 billion dollars.
IMF said in a statement that the Executive Board approved a nine-month SBA for Pakistan for an amount of 3 billion dollars to support the economic stabilisation program of the authorities.
The important development comes after the international lending agency reached a staff-level deal with Pakistan on policies to be supported by the 9-month SBA.
The statement added that the Executive Board’s approval allows for an immediate disbursement of 1.2 billion dollars to Pakistan.
IMFIMF to phase out remaining amount
The remaining amount would be phased over the programme’s duration, subject to two quarterly reviews.
It further said said that the programme would focus on the implementation of the Fiscal Year 2024 budget to facilitate Pakistan’s required fiscal adjustment and ensure debt sustainability.
It said that the arrangement comes at a difficult economic juncture for Pakistan.
IMF Executive Board approved today Stand-by Agreement (SBA) for US$ 3 billion for Pakistan! https://t.co/eU6naaALBi
— Ishaq Dar (@MIshaqDar50) July 12, 2023
“A difficult external environment, devastating floods, and policy missteps have led to large fiscal and external deficits, rising inflation, and eroded reserve buffers in FY23”, it said.
IMF added that new SBA-supported program of Pakistan would provide a policy anchor for addressing domestic and external imbalances and a framework for financial support from multilateral and bilateral partners.
