The State Bank of Pakistan (SBP) has received a significant financial injection of SDR 828 million, equivalent to around US$1.1 billion, from the International Monetary Fund (IMF).
This influx of funds follows the successful completion of the IMF Executive Board’s second review under the Stand-by Arrangement (SBA) during its meeting on April 29. The approval led to the disbursement of SDR 828 million earmarked for Pakistan.
Consequently, the SBP has seen this substantial sum reflected in its foreign exchange reserves, fortifying the nation’s economic stability.
The IMF’s statement highlighted the positive trajectory of Pakistan’s economic indicators under the 9-month SBA, initiated on July 12, 2023. Notably, the program has served as a crucial policy anchor in addressing both domestic and external imbalances while securing financial support from various multilateral and bilateral partners.
Encouragingly, macroeconomic conditions have witnessed improvement, with a projected growth rate of 2 percent expected for FY24, driven by continued recovery in the latter half of the fiscal year.
Furthermore, the fiscal position has strengthened, evidenced by a primary surplus of 1.8 percent of GDP achieved in the first half of fiscal year 2024, surpassing projections. Inflationary pressures, although still present, have begun to subside and are anticipated to decline further, reaching approximately 20 percent by the end of June.
The IMF emphasized the need for Pakistan to capitalize on this newfound stability by persisting with sound macroeconomic policies and structural reforms to foster stronger, more inclusive, and sustainable growth.
