Pakistan receives final tranche of $1.1 billion as part IMF loan program — central bank

The seal of the International Monetary Fund is seen outside of its headquarters in Washington, DC on October 7, 2021. The annual meetings are running from October 11-17, 2021. (AFP/File)
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Updated 30 April 2024
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Pakistan receives final tranche of $1.1 billion as part IMF loan program — central bank

  • The IMF executive board completed the second review of the $3 billion loan program in its meeting on Monday
  • The approval came a day after PM Sharif’s meeting with IMF Managing Director Kristalina Georgieva in Riyadh

ISLAMABAD: Pakistan has received a final tranche of $1.1 billion as part of a $3 billion International Monetary Fund (IMF) loan program it entered last summer, the central bank said on Tuesday.

The IMF executive board completed the second review of the Stand-by Arrangement (SBA) in its meeting on Monday and approved the disbursement of SDR 828 million ($1.1 billion) for Pakistan, according to the State Bank of Pakistan (SBP).

The approval came a day after Pakistan Prime Minister Shehbaz Sharif discussed a new loan program with IMF Managing Director Kristalina Georgieva on the sidelines of a World Economic Forum (WEF) meeting in the Saudi capital of Riyadh.

“SBP has received SDR 828 million (around $ 1.1 billion) in value 29 Apr 2024 in its account from IMF,” the central bank said in a statement. “The amount shall be reflected in SBP’s foreign exchange reserves for the week ending on 3rd May 2024.”

Pakistan secured the $3 billion IMF program in June last year, which helped it avert a sovereign default. Islamabad says it is seeking a new loan over at least three years to help achieve macroeconomic stability and execute long-overdue reforms.

Finance Minister Aurangzeb has said Islamabad could secure a staff-level agreement on the new program by early July, though he has declined to detail what size of the program it seeks. If secured, it would be Pakistan’s 24th IMF bailout.

The $350 billion South Asian economy faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year — three-time more than its central bank’s foreign currency reserves.

Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the fiscal year ending in June, while average inflation for the year is projected to stand at 24 percent, down from 29.2 percent the previous fiscal year.


Bahraini commander witnesses Pakistan Navy passing-out parade in Karachi

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Bahraini commander witnesses Pakistan Navy passing-out parade in Karachi

  • Rear Admiral Ahmed Mohamed bin Ali says it is a matter of immense pleasure for him to review commissioning of personnel at his alma mater
  • The training you have received has prepared you to step into a challenging yet deeply satisfying career, he tells young officers, midshipmen

ISLAMABAD: Rear Admiral Ahmed Mohamed Ebrahim Al bin Ali, commander of Royal Bahrain Naval Force, witnessed passing-out parade of Pakistan Navy’s 124th Midshipmen and 32nd Short Service Commission Course in Karachi, where he spoke with the newly inducted officers.

The passing-out parade was held at the Pakistan Naval Academy, at which Commandant Commodore Zia-ur-Rehman congratulated 90 midshipmen and 38 cadets who had completed short service commission after going through academic and training phases.

In his address, Rear Admiral Ali said it was a matter of immense pleasure for him to review the commissioning of personnel at his alma mater, the Pakistan Naval Academy, which he had joined as a cadet in February 1983.

“You must be confident and self-assured that you have been trained at one of the best naval academies of the region. The training you have received at Pakistan Naval Academy has prepared you to step into a challenging yet deeply satisfying career,” he told the young officers and midshipmen.

“It has equipped you with essential military and academic skills and you should spare no effort to build up on these to achieve excellence in your professions.”

Pakistan armed forces have long been training cadets and officers from friendly countries. Currently, the Pakistan Naval Academy is training future officers from Bahrain, Djibouti, Iraq, Sri Lanka and Turkiye.

The Bahraini commander said that being here as the chief guest had taken him back to yesteryears and he would have flashbacks of the familiar sounds and aura of this naval academy.

“I cannot help but marvel at the wonderful transformation that has taken place since my days,” he said.

Pakistan and Bahrain have maintained close diplomatic, security, trade and defense relations and have undertaken joint training and security initiatives, besides regular high-level exchanges.

Bahrain’s Read Admiral Ali met Pakistan Naval Chief Admiral Naveed Ashraf earlier this week, according to Pakistan Navy. They discussed matters of mutual interest, regional maritime security and avenues for bilateral naval cooperation.

Earlier in Sept., Pakistan and Bahrain agreed to enhance cooperation in naval training and regional maritime security operations. During the same month, the Bahraini Chief of Defense Staff Lt. Gen. Thiab Saqer Abdulla Al-Nuaimi met with Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu and expressed Bahrain’s interest in learning from the PAF’s experience in multi-domain operations.