Pakistan secures final installment of $1.1b SBA with IMF

WEB DESK: Pakistan’s economic stability just got another reassurance as the International Monetary Fund (IMF) has greenlit the final installment of a $1.1 billion stand-by agreement (SBA), marking the completion of a crucial phase in the country’s financial restructuring efforts.

The approval comes as the culmination of a $3 billion stand-by arrangement between Pakistan and the IMF, aimed at bolstering the nation’s fiscal resilience amidst economic challenges exacerbated by the global economic downturn and domestic structural issues.

Pakistan records current account surplus of $128 million amid import decline

The agreement, was struck by the PDM government in a bit to avert sovereign default. Under the terms of the arrangement, Pakistan has undertaken a series of economic reforms and policy measures aimed at stabilising its economy and fostering long-term prosperity.

Earlier, Pakistan satisfied IMF’s mission with the current economic trajectory to get a green signal for this final tranche.

The disbursement of the final installment of the stand-by agreement is expected to provide much-needed liquidity, that will also help in alleviating balance of payments pressures and strengthening the country’s external position.

While the completion of the stand-by arrangement represents a significant milestone for Pakistan’s economic reform agenda, challenges remain.

Govt borrowing update: Pakistan’s debt surges by Rs161.9 billion

The government will need to remain steadfast in its commitment to implementing the agreed-upon reforms and maintaining macroeconomic stability to ensure the sustainability of the country’s economic recovery.

Finance Minister Muhammad Aurangzeb had also said that Pakistan wants to seal a bigger and longer term programme with the IMF.