Pakistan has received a significant financial boost as the International Monetary Fund (IMF) Executive Board approved a $3 billion Stand-By Arrangement (SBA) for the country, with an initial disbursement of $1.2 billion. Shamshad Akhtar, during Question Hour in the Senate today, detailed the terms of the agreement which spans nine months and includes planned reviews in November 2023 and March 2024.
The successful completion of these reviews is crucial as it will determine subsequent disbursements to Pakistan. The repayment schedule is set to commence after 3.25 years, carrying an interest rate of 4.198%. In order to meet fiscal targets such as the primary deficit, the government has taken steps to reduce its expenditures.
Read More : IMF Greenlights $3 Billion SBA for Pakistan; $1.2 Billion Already Distributed