SBP confirms receipt of $1.26 billion from IMF under Extended Fund Facility.

The State Bank of Pakistan (SBP) has successfully obtained the first installment of a loan from the International Monetary Fund (IMF).

Sources report that Pakistan has received $1.269 billion as part of the broader $7 billion loan agreement. The funds have been deposited into the SBP’s account, confirming a $1 billion increase in the country’s foreign exchange reserves.

On Wednesday, the IMF approved the long-awaited $7 billion Extended Fund Facility (EFF) for Pakistan. This decision was made during an Executive Board meeting led by IMF Managing Director Kristalina Georgieva in Washington, focusing primarily on Pakistan’s situation.

Initially, it was anticipated that Pakistan would receive the first tranche of $1.1 billion by September 30. With the loan program approved, the second tranche is expected within the same fiscal year, with the loan being offered at an interest rate of less than 5 percent.

The Extended Fund Facility loan agreement between Pakistan and the IMF was finalized on July 12. With the loan’s approval, improvements in Pakistan’s economic conditions and foreign exchange reserves are anticipated, reducing the financial pressures on the nation.

Earlier, Prime Minister Shehbaz Sharif mentioned to the media, after a meeting with Turkish President Tayyip Erdogan, that Islamabad had met the stringent conditions set by the IMF and expressed hope for receiving fiscal assistance to stabilize the country’s economy.

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