Islamabad: In a relief to the cash-strapped country, International Monetary Fund (IMF) on Wednesday approved a 9-month Stand-By arrangement for Pakistan to support the country’s economic stabilization program, Pakistan-based Geo News reported.
IMF in a statement said, “Today, the Executive Board of the International Monetary Fund (IMF) approved a 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of SDR 2,250 million (about USD 3 billion, or 111 percent of quota) to support the authorities’ economic stabilization program.”
Earlier in June, Pakistan and IMF reached a staff-level agreement (SLA) of USD 3 billion which was a much-needed relief for the cash-strapped country. The IMF’s announcement on Wednesday came after Pakistan Finance Minister Ishaq Dar said that Pakistan received USD 1 billion from the UAE as part of its financial commitment to help Pakistan receive the IMF bailout package.
In a televised address on Wednesday, Ishaq Dar said, “We have received USD 1 billion from the UAE. The UAE has deposited the amount into the State Bank account,” Geo News reported. Earlier on Tuesday, Ishaq Dar announced that Saudi Arabia deposited USD 2 billion in the State Bank of Pakistan account to help boost Pakistan’s foreign reserves.
On June 30, Pakistan signed a short-term IMF deal under which Islamabad will receive USD 3 billion over nine months, subject to approval by the IMF’s board, according to Geo News report. After months of delays, cash-strapped Pakistan secured the IMF bailout package after taking tough economic measures, including raising interest rates and increasing taxes to meet IMF conditions, as per the Geo News report