People visit a market for shopping in Lahore, Pakistan, Jan 4, 2023. (PHOTO / AP)
ISLAMABAD – The International Monetary Fund (IMF) executive board has approved a $3-billion dollar loan for Pakistan to support the South Asian country's economic stabilization program, the IMF said.
The IMF Executive Board approved a 9-month Stand-By Arrangement (SBA) for Pakistan in the amount of about $3 billion to support the authorities' economic stabilization program, said the IMF in a statement on Wednesday.
The IMF said that the executive board approval allowed for an immediate disbursement of $1.2 billion, with the rest to be phased over the program's duration, subjected to two quarterly reviews
The arrangement comes at a challenging economic juncture for Pakistan, said the global lender, adding that a difficult external environment, devastating floods and policy missteps have led to large fiscal and external deficits, rising inflation and eroded reserve buffers in the fiscal year 2022-23.
"Pakistan's new SBA-supported program will provide a policy anchor for addressing domestic and external imbalances and a framework for financial support from multilateral and bilateral partners," according to the IMF.
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It said that the executive board approval allowed for an immediate disbursement of $1.2 billion, with the rest to be phased over the program's duration, subjected to two quarterly reviews.