Pakistan receives $700mln IMF loan tranche

Pakistan has received $700 million from the International Monetary Fund (IMF) as part of its bailout programme, State Bank of Pakistan (SBP) confirmed on Wednesday.

The loan was approved after the IMF Executive Board completed its first review last week, bringing the total disbursements under the $3 billion Standby Arrangement (SBA) to about $1.9 billion.

Following the International Monetary Fund board’s approval last week, Antoinette Sayeh, Deputy Managing Director and Chair, had said: “There are now tentative signs of activity picking-up and external pressures easing.”

The nine-month SBA approved by the Executive Board on July 12 last month, aims to provide a policy anchor for addressing domestic and external balances and a framework for financial support from multilateral and bilateral partners.

To secure the bailout, Pakistan implemented tough IMF-requested measures: a revamped budget, a record interest rate hike, and painful increases in electricity and gas prices.