IMF disburses $1.2 b to State Bank of Pakistan as part of Stand-By Agreement

Stand-By Agreement is a vital component of the country's economic reform program
 

IMF disburses $1.2 b to State Bank of Pakistan as part of Stand-By Agreement

The International Monetary Fund (IMF) has successfully transferred $1.2 billion to the State Bank of Pakistan, marking a significant milestone in the ongoing Stand-By Agreement between the two entities. This disbursement further strengthens Pakistan's economic stability and reinforces its commitment to implementing crucial reforms.

The Stand-By Agreement, which was reached between the IMF and Pakistan, is a vital component of the country's economic reform program. Under this agreement, Pakistan has committed to implementing a range of structural reforms aimed at bolstering its fiscal and monetary policies, enhancing economic resilience, and promoting sustainable growth.

The disbursement of $1.2 billion reflects the IMF's confidence in Pakistan's progress in implementing the agreed-upon reforms. The funds provided by the IMF will support the country's foreign exchange reserves, promote financial stability, and assist in meeting its balance of payments requirements.

This significant financial injection will contribute to Pakistan's efforts to address economic challenges, including inflation, fiscal consolidation, and external vulnerabilities. The funds will also play a pivotal role in facilitating government expenditure on essential sectors, such as healthcare, education, and infrastructure development.

IMF spokesperson commended Pakistan's commitment to implementing critical reforms and stated, "We are pleased to transfer the $1.2 billion disbursement to the State Bank of Pakistan as part of our ongoing collaboration. This reflects the progress made by Pakistan in implementing the necessary reforms to strengthen its economy and promote sustainable growth."

Pakistan's authorities have reiterated their determination to continue with the reform agenda outlined in the Stand-By Agreement. They view the disbursement as an encouraging endorsement of their efforts and an opportunity to accelerate economic recovery and stimulate private sector investment.

The IMF's financial support is expected to instill confidence among international investors and lenders, fostering an environment conducive to attracting foreign direct investment and promoting economic growth. The disbursement aligns with Pakistan's broader strategy to achieve macroeconomic stability and create a favorable business climate that drives job creation and income generation.

As Pakistan continues to implement the agreed-upon reforms, the IMF remains committed to providing continued support and working closely with the authorities to ensure the country's economic resilience and long-term sustainable growth. The disbursement of $1.2 billion under the Stand-By Agreement represents a significant step forward in strengthening Pakistan's economic outlook and positioning the country for a prosperous future.

Source: https://pkrevenue.com/

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