IMF approves $3 billion SBA for Pakistan, $1.2 billion disbursed

ISLAMABAD – 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.

Additionally, Akhtar provided insights into the operations of the State Bank of Pakistan (SBP) under the SBP Act of 1956. The central bank employs 1178 staff members under two distinct compensation schemes: One offering pension benefits known as OMS and the other including provident fund and gratuity contributions called NC&BS. For the fiscal year 2022-23, Rs 6,818 million has been budgeted for salaries and benefits for these employees.

In an effort to enhance governmental efficiency, ministries have been directed to cut down on utility consumption. Moreover, audit teams have reported expenses amounting to Rs 46.419 million over the past three years while examining finances at foreign missions.

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