SBP receives $1.1bln IMF loan tranche

KARACHI: The State Bank of Pakistan (SBP) has received SDR 828 million (around $1.1 billion) from the International Monetary Fund (IMF), a day after the Fund approved the last tranche for Pakistan under the $3 billion Stand-By Arrangement (SBA). 

In a statement on Tuesday, the SBP said the amount would reflect in the foreign exchange reserves for the week ending on May 3. 

The International Monetary Fund (IMF) on Monday approved disbursement of $1.1 billion tranche, concluding the second bailout package in eight years.

The development follows a meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva in Riyadh on Sunday.

In his first meeting with the IMF chief since being re-elected, PM Shehbaz discussed the possibility of Pakistan entering a new programme with the IMF.

Pakistan is now hoping for a bigger loan programme worth $6bn to $8bn spanning over three to four years, as an IMF team is expected to arrive in Islamabad some time next month to discuss the terms and conditions.

It is not just the Extended Fund Facility (EFF), with Pakistan also aiming at getting additional funding under climate financing – a request yet to be approved but will be deliberated upon during the upcoming talks.