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IMF Executive Board okays $1.1bn loan tranche for Pakistan
[GEO.TV] The International Monetary Fund’s (IMF) Executive Board has approved the last tranche of $1.1 billion for Pakistain under the $3 billion Stand-By Arrangement (SBA), Geo News reported on Monday."The Executive Board of the International Monetary Fund (IMF) completed the second and final review of Pakistain’s economic reform program supported by the IMF’s Stand-By Arrangement (SBA)," the international lender said in an official statement issued on its website on Monday. "The Board’s decision allows for an immediate disbursement of SDR 828 million (around $1.1 billion), bringing total disbursements under the arrangement to SDR 2.250 billion (about $3 billion)." "Pakistain’s determined policy efforts under the 2023 Stand‑By Arrangement (SBA) have brought progress in restoring economic stability. Moderate growth has returned; external pressures have eased; and while still elevated, inflation has begun to decline. Given the significant challenges ahead, Pakistain should capitalize on this hard‑won stability, persevering—beyond the current arrangement—with sound macroeconomic policies and structural reforms to create stronger, inclusive, and sustainable growth. Continued external support will also be critical," said Antoinette Sayeh, Deputy Managing Director and Chair. "The State Bank of Pakistain’s tight monetary policy stance remains appropriate until inflation returns to more moderate levels. Further improvements in the functioning of the foreign exchange (FX) market, together with a market‑determined exchange rate, will help buffer external shocks and attract financing, thereby supporting competitiveness and growth. The significant rebuilding of FX reserves under the SBA needs to continue. Moreover, stronger action to address undercapitalized financial institutions and, more broadly, vigilance over the financial sector are needed to ensure financial stability." Related: International Monetary Fund: 2024-04-29 PM Shehbaz, IMF chief discuss new bailout package on WEF sidelines International Monetary Fund: 2024-04-21 Pakistan makes formal request to IMF for another bailout International Monetary Fund: 2024-04-19 IMF revises down growth forecast for MENA region to 2.7% from 3.4% on Gaza war, Red Sea trade disruptions Posted by: Fred 2024-04-30 |
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