SBP receives $1.39 billion emergency funds from IMF

KARACHI: State Bank of Pakistan (SBP) has announced to receive a $1.39 billion loan from the International Monetary Fund (IMF).

The announcement was made on Twitter where the SBP wrote that the amount was received from the IMF under Rapid Financing Instrument to help countries affected by the coronavirus pandemic. 

#SBP has received $1.39 bn under Rapid Financing Instrument by the #IMF.

— SBP (@StateBank_Pak) April 22, 2020

Last week the IMF had approved a $1.386 billion funding for Pakistan to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.

According to a statement, the Executive Board of the IMF approved the funds to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic, adding that the near-term economic impact of the pandemic is expected to be significant, giving rise to large fiscal and external financing needs.

The IMF said that the funds will provide a backstop against the decline in international reserves and provide financing to the budget for targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact.

The organisation added that the global financial institution remains closely engaged with the Pakistani authorities and as the impact of the COVID-19 shock subsides will resume discussions as part of the current EFF.