Pakistan Secures $700 Million IMF Loan Tranche | Boosting Finances

The Breaking News about Pakistan secures $700 million IMF loan tranche: According to sources, which cited that Pakistan received a $700 million IMF loan tranche on Wednesday from the International Monetary Fund (IMF) as part of a nine-month Stand-By Arrangement (SBA).

This event occurs just a few days after Pakistan’s SBA-backed economic reform program underwent its first appraisal by the IMF Executive Board. Due to the Board’s decision, approximately $700 million IMF loan allowed to disburse immediately, with a total of approximately $1.9 billion disbursements under the arrangement.

The agreement between the Fund and Pakistan on November 15, 2023, at the staff level, highlighting the country’s commitment to enacting significant reforms, is what led to the IMF’s approval.

The agreement supports the authorities’ commitment to advancing the planned fiscal consolidation, accelerating cost-cutting reforms in the energy sector, completing the transition to a market-determined exchange rate, and pursuing state-owned enterprise and governance reforms in order to attract investment and promote job creation while bolstering social assistance.

About $1.8 billion of the $3 billion IMF program will remain unpaid when it expires in the second week of April 2024, the Fund disbursed its initial tranche of $1.2 billion in July.

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