IMF Executive Board approves $1.1 Billion final tranche for Pakistan under Standby Agreement.

The International Monetary Fund's Executive Board on Monday completed the second review under the Stand-By Arrangement for South Asian Country, allowing for an immediate disbursement of SDR 828 million (around $1.1 billion), bringing total disbursements under the arrangement to SDR 2.250 billion (about $3 billion).

The IMF and Pakistan had reached Staff Level Agreement on second and final review on March 20, 2024 for remaining $1.1 under Staff Level Agreement done in 2023.

Pakistan’s 9-month SBA, approved by the Executive Board on July 12, 2023, successfully provided a policy anchor to address Circular and external balance of payment as well as a framework for financial support from Multilateral and Bilateral partners, IMF said in letter received today.

The statement said, Macroeconomic conditions have improved over the course of the program, adding growth of 2 percent is expected in Financial Year 2024 given continued recovery in the second half of the fiscal year.

The fiscal position continues to strengthen with a primary surplus of 1.8 percent of GDP achieved in the first half of fiscal year 2024, well ahead of projections and putting Pakistan on track to achieve its end-FY24 target primary surplus of 0.4 percent of GDP.