Pakistan’s foreign exchange reserves are set to get a boost this week, after the State Bank of Pakistan confirmed that it has received about $1.2 billion from the International Monetary Fund. The inflow follows the Fund’s approval of the second review of the Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF).
In a statement on Thursday, the central bank said it had received a combined 914 million Special Drawing Rights, which is roughly equal to $1.2 billion. The amount will appear in the country’s reserves data for the week ending December 12.
The IMF Executive Board cleared the disbursements on Monday. It approved SDR 760 million under the EFF and another SDR 154 million under the RSF, after reviewing Pakistan’s progress during meetings held on December 8.
Reform progress recognised
Nigel Clarke, the IMF’s Deputy Managing Director and Acting Chair, noted that Pakistan’s latest reform steps had helped keep the economic situation stable despite a challenging environment.
He said real GDP growth had picked up, inflation expectations had stayed under control, and both fiscal and external pressures had eased. Clarke added that Pakistan would still need to follow careful economic policies and speed up reforms to support stronger, private sector-driven growth in the years ahead.
The approval comes after an IMF team led by Iva Petrova held detailed talks with Pakistani authorities in Karachi, Islamabad, and Washington from late September to early October. Those discussions eventually led to a staff-level agreement on October 15.
Crucial support for the economy
Economic observers say the IMF programme remains important for Pakistan, not only for the money it provides but also for the policy direction it offers. They believe the support helps shore up reserves at a time when the global financial environment remains uncertain, while giving the government a clearer path for long-term reforms.
