Pakistan secures $1bn in first instalment from IMF

The State Bank of Pakistan (SBP) has received the International Monetary Fund (IMF)’s first loan instalment.

As part of the $7 billion loan arrangement, sources claim Pakistan has received $1.269 billion.

To the SBP’s account, the money has been sent. Pakistan’s reserves of foreign currency have climbed by $1 billion, and the central bank has verified receipt of the installment.

On Wednesday, the $7 billion Pakistani Extended Fund Facility (EFF) was approved by the Fund, greatly anticipated.

At a meeting of the Executive Board in Washington, DC, Pakistan was given priority at the meeting, which was presided over by IMF Managing Director Kristalina Georgieva.

The initial $1.1 billion tranche was previously anticipated to reach Pakistan by September 30.

Anticipated to be supplied in the same fiscal year that the loan plan is authorized, the second tranche will be financed by an IMF loan at an interest rate of less than 5%.

A deal about the Extended Fund Facility credit programme was reached on July 12 between Pakistan and the IMF.

Pakistan should see an increase in its foreign exchange reserves, a strengthening of its economy, and reduced pressure to make debt payments if the loan is authorized.

Prime Minister Shehbaz Sharif had earlier told the media that Islamabad had complied with the IMF’s strict guidelines and was seeking to get financial support to stabilize the country’s economy after meeting with Turkish President Tayyip Erdogan.