akistan’s central bank confirmed on Wednesday it has received a second tranche of $705.6 million from the International Monetary Fund,(IMF) while the UAE rolled over its deposits worth $2 billion with the country’s state bank the same day.
In July 2023, the IMF approved a much-needed 9-month Stand-By Arrangement (SBA) with Pakistan for $3 billion to support the country’s economic stabilization program. The last-gasp deal helped the South Asian country avoid a looming sovereign default.
On Jan. 11, the international lender completed the first review of Pakistan’s program, allowing for an immediate disbursement of $700 million.
“SBP [State Bank of Pakistan] has received SDR 528 million (equivalent to $705.6 million) 2024 from the IMF following successful completion of the first review by the Executive Board of IMF under Stand By Arrangement (SBA),” the central bank said in a statement.
Pakistan received $1.2 billion in July 2023 after the SBA was finalized. The fresh inflows of $705 million would augment the country’s foreign exchange reserves to around $8.8 billion.
The disbursement will be reflected in the central bank’s reserves for the week ending on Jan.19, 2024.
In another positive development for cash-strapped Pakistan, the UAE also confirmed it had rolled over two deposits worth $1 billion each with Pakistan’s central bank.
“UAE has confirmed rollover of its two deposits of $1 billion each placed with State Bank of Pakistan for another one year which were maturing in January 2024,” SBP said in another statement.
