IMF Greenlights $700M in Second Tranche for Pakistan from $3B Package

In the midst of Pakistan’s severe economic challenges, the International Monetary Fund (IMF) Executive Board conducted its inaugural review of the nation’s economic reform program, resulting in the immediate disbursement of USD 700 million on Thursday, as reported by ARY News.

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According to a statement from the Pakistan Finance Ministry, the Board’s endorsement authorizes the swift release of SDR 528 million (equivalent to approximately US$ 700 million), bringing the cumulative disbursements under the StandBy Arrangement (SBA) to US$ 1.9 billion.

The IMF’s approval aligns with the staff-level agreement reached between Pakistan and the IMF on 15 November 2023, emphasizing the nation’s commitment to implementing crucial reforms. This nod from the IMF Executive Board coincided with the ongoing efforts of interim Finance Minister Shamshad Akhtar and Army Chief General Asim Munir to rejuvenate the country’s ailing economy.

The current IMF program, amounting to USD 3 billion, is slated to conclude in the second week of April 2024, with approximately USD 8 billion yet to be disbursed. The IMF disbursed the initial tranche of USD 1.2 billion in July. With the IMF board’s green light, Pakistan is set to receive an additional installment of around 700 million US dollars. Finance ministry officials affirmed that Pakistan has met all IMF targets and expressed optimism about achieving the desired outcomes.