Pakistan receives $1.1bn from IMF

The State Bank of Pakistan has successfully obtained the last payment of $1.10 billion under the Standby Arrangement (SBA) with the International Monetary Fund (IMF).

An official announcement on the Central Bank of Pakistan’s site confirmed the receipt of SDR 828 million, which is approximately $1.1 billion, into the bank’s account.

The statement further explained that this sum will be reflected in the State Bank of Pakistan’s foreign exchange reserves in the week concluding on May 3, 2024.

On the preceding day, the IMF’s Executive Board sanctioned the disbursement of the terminal tranche of $1.10 billion to Pakistan under the SBA during a session in Washington on Monday.

Earlier on April 20, the IMF disclosed its meeting agenda, outlining that Nigeria’s debt proceedings would undergo examination on April 29.

Subsequently, on May 1, the fiscal strategies for Kiribati and Montenegro are slated for review, however, Pakistan was not listed.

Previous communiqués from the IMF and Pakistani authorities had suggested the board’s consent to allocate the final $1.1 billion segment under the SBA agreement at its April 29 gathering, originally set to conclude in June 2023.

The misinterpretation caused by the IMF schedule fueled conjectures in Pakistan about being omitted from the board’s timetable, prompting some to consider whether Pakistan needed to re-negotiate for the last portion.

However, a past official of the World Bank dismissed these rumors as unfounded, clarifying that the IMF would explicitly communicate any decisions to defer a program, and not resort to secrecy.

He explained that although the meeting might be delayed because of scheduling issues, it usually doesn’t impact a program once there’s a staff-level agreement.

It’s worth remembering that on March 20, Pakistan and the IMF reached such an agreement. This paved the way for the release of 1.1 billion dollars as the final installment of Pakistan’s loan.

So far, Pakistan has received 1.09 billion dollars from the IMF, distributed over two installments.