Dr. Shamshad Akhtar, caretaker Federal Minister for Finance, announced on Thursday that Pakistan would receive financial assistance from various multilateral development banks.
IMF’s $700 Million Tranche
Pakistan will receive this financial assistance once the first review of the SBA approved by the IMF Executive Board.
In an interview with a private television channel, she stated that Pakistan would not only receive $700 million from the fund, but that the SBA approval would also enable the country to receive financial assistance from other multilateral financial institutions.
The minister stated that she has recently completed a thorough review of World Bank, Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB) loans.
She stated that the SBA agreement will submit to the IMF Executive Board for approval before the Christmas holidays.
Pakistan To Unlock $1.5 Billion From Multilateral Financial Institutions
However, If approved, it would unlock approximately $1.5 billion under multilateral institutions’ quick disbursement programs, which were the driving force behind many reforms implemented by the government.
In order to comply with SBA conditions, the government lifted import bans, simplified import licensing, and stabilized the exchange rate.
She stated that the leadership, including the Prime Minister and the SIFC, aided in all of these measures.
The current government collaborated and took steps toward macroeconomic sustainability.
“We want and are doing to back up with strong fundamental structural reforms,” she added.
Caretaker Govt. Steps To Boost Economy
She stated that because the government had followed the SBA agreement, no additional measures would be required and no budget would be created.
She anticipated that the FBR’s collective revenues will exceed the target of Rs. 9.4 trillion because the government’s expenditures would be higher.
The FBR managed to exceed the IMF’s targets in the first quarter.
She stated that if there was a revenue shortfall, it would be met with additional measures.
To read our blog on “Pakistan’s FDI decreased by 29% MoM to $122 mn in Oct 2023,” click here.