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Saturday, August 13, 2022

IMF grants $1.05 billion to Pakistan’s State Bank.

KARACHI: The International Monetary Fund (IMF) has awarded Pakistan $1.05 billion following the satisfactory completion of the sixth review of the External Fund Facility (EFF) programme, the central bank stated on Friday.

“Following the successful conclusion of the IMF program’s 6th review, #SBP has received the next tranche of $1.053 billion,” the SBP said on Twitter.

After the conclusion of the 2021 Article IV consultation and the sixth review of the extended arrangement under the EFF for Pakistan, the IMF decided late Wednesday to restart the stalled $6 billion loan programme.

Following the completion of the sixth review, the authorities were able to draw SDR 750 million (about $1 billion), bringing the total budget support purchases under the programme to SDR 2,144 million (around $3 billion, or 1065 percent of the quota).

On July 3, 2019, the board approved the EFF for SDR 4,268 million (about $6 billion at the time of approval, or 210 percent of quota).

The program’s goal is to help Pakistan’s policies rebound from the COVID-19 pandemic, maintain macroeconomic and debt sustainability, and progress structural reforms to provide the groundwork for strong, job-rich, and long-term prosperity that benefits all Pakistanis.

It’s worth noting that Pakistan entered the COVID-19 epidemic with reinforced buffers, thanks to the EFF program’s approval.

The next (seventh) evaluation of the $6 billion EFF initiative is scheduled for April 2022. In September 2022, the eighth and final review will be completed.

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