Pakistan receives $1.03 billion in the first installment from the IMF under the EFF.

 SBP's liquid reserves would be impacted by these inflows; an official announcement is anticipated on Thursday, October 3 in Karachi.

Under the terms of the 37-month Extended Fund Facility, the State Bank of Pakistan (SBP) has received the first tranche of Special Drawing Rights (SDR) 760 million, or $1.03 billion, from the International Monetary Fund (IMF).
This payment was made in response to the $7 billion program approved by the IMF Executive Board, which was intended to stabilize Pakistan's economy. These inflows will be recorded in the SBP's liquid reserves, it was confirmed, and an official announcement is anticipated on Thursday, October 3, 2024.



It is believed that Pakistan's economic problems, such as strains on its balance of payments and depleting foreign reserves, will be greatly helped by the IMF package.

Pakistan agreed to cut subsidies, shift certain fiscal duties to the provinces, and reform its agriculture income tax in exchange for the foreign lender approving a $7 billion new rescue plan on Wednesday.

The IMF Executive Board authorized the $7 billion, 37-month Extended Fund Facility, according to the Prime Minister's Office. Additionally, it approved the first loan tranche, totaling less than $1.1 billion, to be released right away. Pakistan has received the 25th IMF program and the 6th EFF since 1958.



According to a statement from the Ministry of Finance provided to the Senate Standing Committee on Economic Affairs, Pakistan will pay an interest rate of about 5% on the IMF loan.