The IMF Executive Board concluded the second review under Pakistan’s Stand-By Arrangement, enabling an immediate disbursement of approximately $1.1 billion, totaling disbursements to about $3 billion under the arrangement.
The second review under Pakistan’s Stand-By Arrangement (SBA) by the IMF Executive Board has resulted in an immediate disbursement of $1.1 billion, bringing total disbursements to about $3 billion. This influx is expected to boost the State Bank of Pakistan’s reserves close to $9 billion, from the recorded $7.981 billion as of April 19.
The 9-month SBA, initiated on July 12, 2023, has provided stability, addressing domestic and external imbalances while securing financial support from various partners. The program’s focus includes fiscal adjustments, social spending protection, external shock buffering, disinflation measures, and structural reforms, especially in the energy sector, SOE governance, and climate resilience.
Macroeconomic conditions have improved, with a projected 2% growth in FY24 and a primary surplus achieved in the first half of the fiscal year. Inflation, although still high, is expected to decline with continued tight monetary policy. With sound policies and reform efforts, growth is projected to strengthen over the medium term.
Gross reserves have increased significantly and are expected to continue rebuilding. Deputy Managing Director Antoinette Sayeh emphasized the need for continued sound policies and structural reforms beyond the current arrangement to ensure stronger, inclusive, and sustainable growth.
