State Bank receives $1.39b from IMF under Rapid Financing Instrument
State Bank of Pakistan (SBP) has received $1.39 billion under Rapid Financing Instrument from the International Monitoring Fund (IMF) on Wednesday to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic in Pakistan.
The State Bank tweeted that, “#SBP has received $1.39 bn under Rapid Financing Instrument by the #IMF.”
Pakistan already has an IMF $6 billion Extended Fund Facility loan programme.
On April 16, IMF approved the disbursement of $1.386 billion under the Rapid Financing Instrument to address the economic impact of the Covid-19 shock in Pakistan.
IMF said, “With the near-term outlook deteriorating sharply, the authorities have swiftly put in place measures to contain the impact of the shock and support economic activity. Crucially, health spending has been increased and social support strengthened.”
“As the impact of the COVID-19 shock subsides, the authorities’ renewed commitment to implement the policies in the existing EFF will help support the recovery and strengthen resilience,” IMF said.
Following the Executive Board discussion, Mr. Geoffrey Okamoto, First Deputy Managing Director and Acting Chair, made the following statement: “The outbreak of Covid-19 is having a significant impact on the Pakistani economy. The domestic containment measures, coupled with the global downturn, are severely affecting growth and straining external financing. This has created an urgent balance of payments need.