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Pakistan will draw $5.6 billion in financing, Bloomberg News reported on Friday, an amount that includes inflows from Saudi Arabia and the United Arab Emirates (UAE) that have been deposited in the country’s central bank. Inflows from the International Monetary Fund (IMF) are not part of this financing.

The funding “includes $3.7 billion of commitments from bilateral partners including Saudi Arabia and the UAE”, Nathan Porter, the IMF’s mission chief for Pakistan, was quoted as saying in an emailed response to Bloomberg News.

Some $3 billion has been disbursed, Porter said, referring to the inflows from the two Gulf countries as confirmed by Finance Minister Ishaq Dar earlier this week.

This essentially leaves $700 million of commitments that have yet to materialise as inflows from bilateral partners.

Recent developments have helped Pakistan’s depleting foreign exchange reserves that dropped to nearly $4 billion earlier this month.

IMF delves into reasons behind ‘shorter’ programme with Pakistan

Additionally, “more inflows are expected from multilateral development partners including the World Bank, Asian Infrastructure Investment Bank and Islamic Development Bank in the coming weeks and months, Bilal Kayani, Prime Minister’s coordinator on the economy, said in a Twitter post.

In addition to the support from bilateral and multilateral partners/institutions, Pakistan – contingent on the two reviews of the IMF’s Stand-By Arrangement (SBA) – will also see a cumulative inflow of $1.8 billion from the Washington-based lender. A first tranche of nearly $1.2 billion has already landed in the account of the State Bank of Pakistan.

Financing assurances

Securing financing commitments, reportedly of around $6 billion, was a major hurdle in reviving the now-defunct IMF’s Extended Fund Facility. The programme remained stalled at the ninth review for months with not nearly enough financing commitments coming through to convince the IMF to move ahead on Pakistan’s bailout.

However, in a major breakthrough for Islamabad, the government managed to see an upgraded version of the EFF by first securing a staff-level agreement for a new, nine-month SBA before the IMF Executive Board also gave its green signal to the $3-billion programme.


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Johnny Walker Jul 14, 2023 04:07pm
First and last tranche from IMF unless reforms are implemented. Nawaz & Zardari will not do it. Back to square 1 by end of 2023.
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Muhammad Yasin Jul 14, 2023 09:33pm
Old habits die hard.
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Muhammad Yasin Jul 14, 2023 09:49pm
Old habits die hard
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Az_Iz Jul 15, 2023 04:58am
Can the country use this breather, to reform and stand on its own feet, or is it going to blow it , with imports and consumption. And be back, to averting another default.
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KhanRA Jul 15, 2023 05:01am
India just sent a rocket to the moon and we’re happy that we were able to successfully beg for loans. I’m really starting to wonder if Partition was a good idea, especially since Modi could never win if our votes counted.
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Az_Iz Jul 15, 2023 05:08am
The lenders should keep a tight leash, and force reforms. The gutless politicians will not do it on their own. They will take the easy and populist route, to stay in power.
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M Asif Jul 15, 2023 05:50am
Let's see how Nawaz Govt. Get out of Pakistan where they pushed a number a years back
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Amar Kayani Jul 15, 2023 09:28am
@KhanRA, have you not seen what happens to muslims in india are you blind
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Asim Jul 17, 2023 05:08pm
@Johnny Walker, absolutely right this is a phased and step by step failure engineered by the establishment - for Nawaz and Zardari its no problem they have billions stashed abroad again courtesy of the so called "neutrals" whereas the common man will never see any benefit of any of these bail-outs, by the way keep a close eye on how quickly they spend this money as our foreign minister is all too keen on foreign trips, just like this father who visited more than 100 countries during this tenure as a president - what better use of this borrowed money from IMF but to spend in style on these foreign trips - its the common man that eventually suffers but that's no problem too as neutrals are there to quickly "neutralise" them
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