IMF Board
The International Monetary Fund’s executive board has granted approval for the immediate disbursement of $700 million for Pakistan under the $3-billion Stand-By Arrangement (SBA), as part of the ongoing economic reform program. This decision, following the completion of the 1st review, brings the total disbursements under the SBA to $1.9 billion, marking a significant step in bolstering Pakistan’s fiscal resilience.
The finance ministry confirmed the IMF’s executive board’s move, emphasizing that the disbursement will contribute to supporting Pakistan’s economic reforms. The first review of Pakistan’s economic reform program, backed by the SBA, received positive endorsement from the executive board, reflecting confidence in the country’s commitment to implementing necessary reforms.
The Executive Board of the International Monetary Fund (IMF) completed the 1st review and allows for an immediate disbursement of SDR 528 million (around US$ 700 million) bringing the total disbursements under the SBA to US$ 1.9 billion.
— Ministry of Finance, Government of Pakistan (@Financegovpk) January 11, 2024
The staff-level agreement reached on November 15 paved the way for this development, showcasing the collaboration between the IMF and Pakistan in addressing economic challenges. The disbursement aligns with the ongoing efforts to stabilize and strengthen Pakistan’s economic fundamentals, providing essential financial support.
The rise in Pakistan’s sovereign international dollar bonds ahead of the IMF executive board meeting underlines the positive market response to the country’s economic reform initiatives. The 2026 bonds experienced notable gains, reaching 70.79 cents on the dollar, reflecting investor confidence in the trajectory of Pakistan’s economic reforms.
The visit of the IMF team, led by Nathan Porter, in November 2023 played a pivotal role in discussions on the first review of Pakistan’s economic program supported by the SBA. The positive outcome of these deliberations is evident in the IMF’s decision to release the $700 million tranche, affirming Pakistan’s commitment to implementing necessary reforms for sustained economic stability.
This financial injection will contribute to meeting the country’s economic challenges, supporting vital sectors, and reinforcing the overall economic outlook. The disbursement is a testament to the collaborative efforts between Pakistan and the IMF in navigating economic complexities and fostering a path toward sustainable growth.
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