Pakistan receives $1.2 billion from IMF after approval of short-term bailout facility

Pakistan's finance minister Ishaq Dar speaks while presenting the economic report for fiscal year 2022-23, in Islamabad on June 8, 2023. (AFP/File)
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Updated 13 July 2023
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Pakistan receives $1.2 billion from IMF after approval of short-term bailout facility

  • The country’s finance minister confirms the international lender transferred the amount to the central bank
  • Ishaq Dar says the remaining $1.8 billion will be released by the international lender after two economic reviews

ISLAMABAD: The International Monetary Fund (IMF) has transferred $1.2 billion to Pakistan’s central bank a day after its executive board approved a much-awaited $3 billion bailout facility for the country, finance minister Ishaq Dar announced in a brief televised statement on Thursday.

The government reached a stand-by agreement (SBA) over the nine-month financing facility with the international lender after intense negotiations which began earlier this year.

The recent approval of the agreement by the IMF executive board came as a sigh of relief for the South Asian country amid concerns that it might default on its external financial obligations.

“The IMF has transferred the upfront payment of $1.2 billion to the State Bank of Pakistan account,” Dar said while reiterating other contours of the deal.

He said that the remaining $1.8 billion under the short-term loan program would be disbursed after two economic reviews carried out by the IMF.

The finance minister said the country’s official reserves had increased by $4.2 billion in the ongoing week after Saudi Arabia and the United Arab Emirates also collectively contributed $3 billion to help Pakistan deal with the financial crisis.

Dar hoped the overall foreign exchange reserves of the country would be between $13 billion to $14 billion after the central bank releases its forex report tomorrow.

“We should now try to take the economy toward a positive trajectory,” he added.


US, Pakistan agree to strengthen security and border cooperation

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US, Pakistan agree to strengthen security and border cooperation

  • Pakistan, US have maintained multifaceted ties, encompassing security cooperation, economic engagement and people-to-people ties
  • ‎In August last year, both countries reaffirmed their commitment to combating militancy by boosting capabilities against emerging threats

KARACHI: The United States (US) and Pakistan have agreed to strengthen cooperation on security and border management, the Pakistani interior ministry said on Saturday, with both sides reaffirming commitment to counter terrorism, enhance information-sharing and promote regional stability.

The statement came after a meeting of Pakistani Interior Minister Mohsin Naqvi with a high-level US delegation, led by US Chargé d’Affaires Natalie Baker, that featured in-depth discussions on boosting Pakistan-US relations and expanding cooperation in shared areas of interest.

The two sides discussed training programs for officials of Pakistan’s Federal Investigation Agency (FIA), Federal Constabulary and NCCIA National Cyber Crime Investigation Agency (NCCIA) as well as the establishment of a Center for Transformation Crime and an academy within FIA with US support.

‎“Both sides agreed to enhance collaboration in bilateral security and border management,” the interior ministry said. “It was mutually agreed to further strengthen existing cooperation with the [US] Anti-terrorist Assistance Program and the Bureau of International Narcotics and Law Enforcement Affairs.”

‎Both sides agreed to equip Pakistani border security agencies, coast guards and other institutions with modern US-supplied equipment.

On the occasion, Naqvi said that modern technology would enhance the capacity of Pakistani border security agencies and coast guards, according to the ministry. He welcomed US assistance in the reorganization of the Federal Constabulary and in strengthening the capabilities of FIA and NCCIA.

Pakistan and the US have maintained multifaceted relations for decades, encompassing security cooperation, economic engagement and people-to-people ties. While the partnership has experienced periods of strain, particularly over regional security dynamics in South Asia and Afghanistan, both sides have continued to engage through institutional mechanisms, including military-to-military contacts, counterterrorism cooperation and high-level diplomatic dialogues.

In August last year, both sides reaffirmed their commitment to combating militancy by boosting capabilities against emerging threats, the Pakistani foreign office said, following a Pakistan-US joint counterterrorism dialogue in Islamabad. This month, Pakistan and the US launched the 13th edition of their bilateral joint counterterrorism exercise, Inspired Gambit 2026, to boost interoperability and share counterterrorism expertise, the Pakistani military said.

Naqvi said the US support in activating FIA’s Counter-Terrorism Wing would prove to be “highly beneficial,” while the NCCIA is carrying out an extensive crackdown on illegal call centers across the country.

“Advanced software is vital for preventing financial fraud and terror financing, and US cooperation with NCCIA in this regard is highly significant,” he said.

‎The minister emphasized the need to further expand collaboration with Pakistani institutions, according to the Pakistani interior ministry. The US delegation appreciated Pakistan’s efforts to increase security cooperation and strengthen bilateral ties.

‎“‎The acting US ambassador acknowledged the ongoing collaboration between the Ministry of Interior and US agencies at various levels and reaffirmed that efforts would continue to further enhance partnership with Pakistan,” the ministry added.