SBP receives $1.1 billion IMF tranche amid excessive hopes of financial stability

In an announcement on Tuesday, the central financial institution stated the quantity could be mirrored within the SBP’s overseas alternate reserves for the week ending on Could 3, 2024.

Final week, the SBP stated its overseas alternate reserves dropped by $74 million to $7.981 billion within the week ending on April 19 due to exterior debt repayments.

The nation’s overseas reserves fell by $93 million to $13.281 billion. The reserves of economic banks additionally decreased by $20 million to $5.299 billion, as per the SBP.

An official assertion issued by the IMF late Monday stated the chief board accomplished the second and closing overview of Pakistan’s financial reform programme supported by the SBA.

“The board’s determination permits for a direct disbursement of SDR 828 million (round $1.1 billion), bringing complete disbursements underneath the association to SDR 2.250 billion (about $3 billion).”

This was the third and final tranche of a $3 billion SBA with the IMF, which Pakistan secured final summer season to avert a sovereign default.

The IMF — Washington-based lender — stated the 9-month SBA, authorised by the chief board on July 12, 2023, efficiently supplied a coverage anchor to deal with home and exterior imbalances in addition to a framework for monetary assist from multilateral and bilateral companions.