State Bank of Pakistan receives $1.05 billion from IMF

• "SBP has received $1.053bn," central bank announces.
• Earlier this week, IMF decided to resume stalled $6bn programme.
• Next review under EFF programme will be due in April 2022.

KARACHI: Pakistan has received $1.05 billion from the International Monetary Fund (IMF) following the successful conclusion of the sixth review of the External Fund Facility (EFF) programme, the central bank announced on Friday.

"Following the successful completion of the 6th review of the IMF programme, #SBP has received the next tranche of $1.053 billion," the SBP wrote on its official Twitter account.

Late on Wednesday, the IMF decided to resume the stalled $6 billion loan programme, after the conclusion of the 2021 Article IV consultation and the sixth review of the extended arrangement under the EFF for Pakistan.

The completion of the sixth review allowed the authorities to draw the equivalent of SDR 750 million (about $1 billion), bringing total purchases for budget support under the programme to SDR 2,144 million (about $3 billion, or 1065 of the quota).

The EFF was approved by the board on July 3, 2019 for SDR 4,268 million (about $6 billion at the time of approval, or 210% of quota).

The programme aims to support Pakistan's policies to help the economic recovery from the COVID-19 pandemic, ensure macroeconomic and debt sustainability, and advance structural reforms to lay the foundations for strong, job-rich, and long-lasting growth that benefits all Pakistanis.

It is pertinent to mention here that Pakistan had entered the COVID-19 pandemic with strengthened buffers, following the approved EFF programme,

The next review (seventh) under the $6 billion EFF programme will be due in April 2022. The last and final eighth review is expected to be done in September 2022.