Pakistan receives $1.39b from IMF

KARACHI: State Bank of Pakistan has taken to the Twitter to announce that Pakistan has today received US $ 1.39 billion under IMF’s Rapid Financing Instrument.

Pakistan to get US$1.386b from IMF’s Rapid Financing Instrument

ISLAMABAD: IMF will be providing US$ 1.386 billion to Pakistan through Rapid Financing Instrument to facilitate the country’s battle against the COVID-19 crisis. 

According to details IMF has approved on Thursday (16th of April,  2020) an emergency loan of US $1.386 billion for Pakistan. Executive Board of IMF has approved 50% of quota (i.e.: US $ 1.386 billion) under Rapid Financing Instrument to meet the urgent balance of payments needs stemming from the outbreak of COVID-19 Pandemic.

IMF noted that health spending here had increased and social support strengthened. With the near-term outlook deteriorating sharply, Pakistan swiftly put in place measures to contain the impact of the shock and support economic activity.

The IMF support will help provide a backstop against the decline in international reserves and provide financing to the budget for targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact.

First Deputy Managing Director and Acting Chair Geoffrey Okamoto stated after a huddle that  outbreak of Covid-19 is having a significant impact on the Pakistani economy. This has created an urgent balance of payments need.

Geoffrey Okamoto observed that in response to the crisis, Pakistan took measures to halt the community spread of the virus and introduced an economic stimulus package aimed at accommodating the spending needed to tackle the health emergency and supporting economic activity.

Savants at the helm of affairs are confident that Pakistan will also get relief in the form of  delay in repayment of loans worth $1.5 billion to bilateral creditors.

Commenting on the development, Reza Baqir governor  State Bank of Pakistan, stated: “Pakistan will receive a significant boost to its foreign exchange reserves and fiscal space to combat Covid-19 through $1.4 billion RFI [Rapid Financing Instrument] approval by the IMF as well as the debt relief from official creditors approved by G-20.”