Islamabad: Amid the Stand-By Agreement with International Monetary Fund (IMF), Pakistan will receive a total of $5.6 billion in financing. The new funding comprises $3.7 billion from Saudi Arabia and UAE as a result of bilateral commitments. According to Finance Minister Ishaq Dar, the remaining $1.8 billion will be received from IMF after two reviews.
The development has assured that Pakistan will avoid default as its foreign reserves have gone up after the funding from IMF & other friendly nations.
In the last four days, Pakistan got a $2 billion deposit from Saudi Arabia and $1 billion from UAE. In addition to this, IMF provided $1.2 billion – the first instalment of a $3 billion Stand-By agreement. The total foreign reserves of Pakistan have surged to $4.2 billion in the past four days. Ishaq Dar briefed that the total foreign exchange reserves of SBP have jumped to $8.4 billion.
The IMF Stand-By agreement has left positive effects on the economy of Pakistan. The Fitch Ratings of Pakistan have gone up to CCC from CCC- & the local currency has also gained strength against the US Dollar.
