The International Monetary Fund (IMF) has approved a $1.2 billion loan for Pakistan. According to reports, an important meeting of the IMF Executive Board was held in Washington on Friday to discuss the release of the next tranche of funding for Pakistan.
During the meeting, the Board approved the fourth tranche under Pakistan’s current loan program, under which $1.2 billion will be transferred to the country.
According to media reports, approval is also expected for the third economic review under Pakistan’s Extended Fund Facility (EFF) program and the second review of the Resilience and Sustainability Facility (RSF) program related to climate change.
Following this approval, Pakistan is expected to receive $1 billion under the EFF program and an additional $200 million under the RSF program.
Pakistan presented its position regarding financial resources and budget priorities for climate action. Consultations are also underway to increase international financial assistance for environmental projects. The government has decided to strengthen institutional cooperation to address environmental challenges. In this regard, indications have been given that climate policy will be prioritised in the national budget and resource allocation.
Meanwhile, the State Bank of Pakistan’s foreign exchange reserves increased by $23 million over the past week. According to foreign exchange data released by the central bank, the State Bank’s reserves have risen to $15.85 billion. The data also showed that the foreign exchange reserves held by commercial banks increased by $1.7 million during the same period, reaching $5.44 billion. According to the State Bank, Pakistan’s total foreign exchange reserves increased by $24.5 million, bringing the country’s total reserves to $21.29 billion.
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