With injection of $700 million, foreign exchange reserves would come close to $9 billion in next few days 
A logo of the International Monetary Fund. — AFP/File
ISLAMABAD: The IMF Executive Board has completed the first review and approved the release of second tranche of $700 million for Pakistan’s dollar-starved economy under the $3 billion Standby Arrangement (SBA) Program.
The finance ministry Thursday night issued a brief statement stating the IMF Executive Board had completed the first review of Pakistan’s economic reform program supported by the IMF’s SBA.
With the injection of $700 million, the foreign exchange reserves would come close to $9 billion in next few days.
“The Board’s approval allows for an immediate disbursement of SDR528 million (around US$700 million) bringing the total disbursements under the SBA to $1.9 billion” added the statement.
Pakistan has assured the IMF in writing that under the SBA programme, the government will return to a market-determined exchange rate and rebuilding of forex reserves.
While inflows following increased regulatory and law enforcement helped normalise import and FX payments and rebuild reserves, the Pakistani authorities recognize that the rupee must remain market-determined to sustainably alleviate external pressures and rebuild reserves.
To support this, they plan to strengthen transparency and efficiency of the FX market and to refrain from administrative actions to influence the rupee.
The government with the signature of minister for finance and SBP governor conveyed to the IMF that steadfast execution of FY24 budget, continued adjustment of energy prices, and renewed flows into the foreign exchange (FX) market had lessened fiscal and external pressures.
