IMF release $700 million , UAE rolled over two $1 bn deposits for Pakistan
International Monetary Fund (IMF) released $700 million tranche and UAE extended two deposits of US$1 billion each to Pakistan for another one year, announced State Bank of Pakistan.
The State Bank of Pakistan (SBP) in a post published on X said that the International Monetary Fund (IMF) has disbursed $700 million as part of the successful completion of the first review by the Executive Board of IMF under Stand By Arrangement (SBA).
The IMF release of funds of $700 million brings the total disbursements under the SBA with the IMF to $1.9 billion.
The nine-month SBA approved by the IMF Executive Board helps addressing domestic and external balances and a framework for financial support from multilateral and bilateral partners.
The United Arab Emirates confirmed the rollover of its two deposits of $1 billion each placed with SBP for another year which were maturing in January 2024.
The much needed deposits may enable Pakistan to secure more multilateral and bilateral loans. However, upcoming elected government will have the challenges for obtaining next IMF program as IMF had clearly asked reforms in order to be engaged with the leading lender.