Pakistan likely to receive inflows from international financial institutions in months

ISLAMABAD  -  Pakistan is expecting to receive inflows from In­ternational financial institutions in next couple of months as the International Monetary Fund (IM­F)’s Executive Board would meet on January 11 next year to approve next tranche worth of $700 million for Pakistan. 

“We are pleased to confirm that the IMF’s Exec­utive Board Meeting is scheduled to consider the first review under Pakistan’s current Stand-By ar­rangement on January 11, 2024” said IMF Resi­dent Representative Eisther Perez Ruiz.

The IMF had approved a nine-month stand-by arrangement (SBA) for Pakistan worth $3 billion in July this year. Pakistan had received one tranche $1.2 billion in July 2023. Pakistan and IMF had reached on a staff-level agreement (SLA) with the Pakistani authorities in Novem­ber this year on the first review of the stabili­zation program, which was subject to approv­al of the IMF’s Executive Board. The agreement was subject to approval of the IMF’s Executive Board. Upon approval around US$700 million (SDR 528 million) will become available bring­ing total disbursements under the program to almost US$1.9 billion.

Pakistan is expecting to receive funds from in­ternational financial institutions after IMF deal. The staff-level agreement would enable ap­provals of $1 billion in loans and the Asian In­frastructure Investment Bank $250 million. According to officials, these agreements were already at an advanced stage and were pend­ing for the IMF’s agreement. Talks with some other commercial entities were also at an ad­vanced stage to materialise $3.5 billion project­ed commercial inflows. The Asian Development Bank (ADB) had approved this week three proj­ects totalling $658.8 million to help Pakistan achieve its goal of more inclusive and sustain­able growth and development.

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