In a significant development, United Arab Emirates (UAE) has confirmed a rollover of total $2 billion with State Bank of Pakistan for another one year and the SBP has received $705 million from the International Monetary Fund (IMF).
“UAE has confirmed the rollover of its two deposits of US$1.0 billion each placed (total $2 billion) with State Bank of Pakistan for another one year which were maturing in January 2024,” the SBP stated on Wednesday.
The central bank also confirmed to have received SDR528 million (equivalent to $705.6 million) in value on 16th January 2024 from IMF following the successful completion of the first review by the Executive Board of IMF under Stand-By Arrangement (SBA). “This disbursement will be reflected in SBP reserves for the week ending on 19th January 2024,” it added.
The IMF Executive Board on last Thursday had approved a $700 million loan tranche for Pakistan as it completed the first review of Pakistan’s economic reform program supported by IMF’s Stand-By Arrangement (SBA). The Board’s approval allows for an immediate disbursement of SDR 528 million (around US$ 700 million) bringing the total disbursements under the SBA to US$ 1.9 billion. The inflow from the IMF would build the country’s foreign exchange reserves. The total liquid foreign reserves held by the country stood at $13.2 billion. The break-up of the foreign reserves position showed that foreign reserves held by the State Bank of Pakistan are $8.2 billion and foreign reserves held by commercial banks are $4.9 billion.
