Pakistan to get IMF tranche in six days after board’s approval: SBP

KARACHI: Pakistan will get the $1.17 billion tranche from the International Monetary Fund (IMF) in six days’ time after approval from the Executive Board that is scheduled to meet on August 29, SBP Acting Governor Murtaza Syed told Bloomberg TV.

Murtaza Syed said that the country’s forex reserves will shore up to $16 bln by the end of the current fiscal year which dropped to $8 billion amid the worsening economic currency crisis.

“Pakistan has commitments of $38 billion so we are over finance,” he said.

The central bank chief said that approvals of bilateral help to materialise soon amounting to $4 billion while the current account deficit expected to be 3% of GDP.

Pakistan has approached China, Saudi Arabia, Qatar and UAE to meet the financing gap on the IMF’s demand.

The breakdown of commitment of $4 billion from friendly countries includes $2 billion from Qatar, $1 billion from Saudi Arabia (deferred oil facility), and $1 billion from UAE (investment). These amounts are expected to be received over the next twelve months.

Islamabad had reached the staff-level agreement with the Washington-based lender in July but the board meeting could not be held despite Pakistan’s appeal to expedite the process.

Delay in the IMF agreement and dry of external flows half the forex reserves from $16 billion in February to $8 billion, he added.