IMF approves $700 million loan

The International Monetary Fund board has approved a $700 million loan for Pakistan under a $3 billion bailout, the finance ministry said.

The Executive Board of the International Monetary Fund (IMF) completed the 1st review and allowed  for an immediate disbursement of around $ 700 million) bringing the total disbursements under the SBA to $ 1.9 billion, it added.

In June 2023, the IMF Executive Board approved the much-needed nine-month arrangement with Pakistan “to support its economic stabilisation programme”. The approval had allowed for an immediate disbursement of $1.2bn, with the rest to be phased over the programme’s duration — subject to two quarterly reviews.

The current IMF programme is expected to conclude in the second week of April. The initial tranche of $1.2bn was released in July.

In November 2023, a Staff-Level Agreement was reached between the IMF staff and Pakistani authorities regarding the first review under Pakistan’s SBA. This agreement was contingent upon approval by the IMF’s Executive Board.