The State Bank of Pakistan (SBP) successfully received a crucial first tranche of SDR 760 million from the International Monetary Fund (IMF) on Friday, providing vital support for the country under the $7 billion Extended Fund Facility (EFF) aimed at stabilizing the economy. The IMF Executive Board approved the 37-month programme on Wednesday, reflecting confidence in Pakistan’s commitment to implementing necessary reforms. These fresh inflows will significantly bolster the central bank’s liquid foreign exchange reserves, demonstrating a positive outlook for the country’s economic stability.
Pakistan’s agreement to the IMF deal in exchange for unpopular reforms signifies its determination to address structural challenges and strengthen macroeconomic stability. Despite facing formidable vulnerabilities, the country has made significant progress in restoring economic stability and is poised for sustained growth with continued support from its development and bilateral partners