The State Bank of Pakistan (SBP) has received a $1 billion tranche from the International Monetary Fund (IMF) under a new program, with additional financing assurances from China, Saudi Arabia, and the United Arab Emirates. This funding is part of a 37-month $7 billion Extended Fund Facility approved by the IMF Board.
The first tranche of special drawing rights (SDRs) worth 760 million has been received by the SBP, with the inflows reflected in liquid reserves to be released on October 3. SDRs are international reserve assets created by the IMF to supplement existing official reserves.
IMF Pakistan Mission Chief Nathan Porter highlighted the economic progress made by Pakistan since mid-2023, including decreased inflation, stable exchange rates, and doubled foreign reserves. However, the challenge now lies in sustaining growth through consistent policy measures.
The IMF Managing Director, Kristalina Georgieva, described her meeting with Prime Minister Shehbaz Sharif as “very productive,” focusing on ongoing recovery, disinflation, tax fairness, and job creation. The approval of the loan agreement will support Pakistan’s efforts to strengthen macroeconomic stability and promote inclusive growth.
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