Wednesday, April 24, 2024
HomeMonetary PolicyIMF’s Aid Increased Foreign Reserves by Over $1 Billion

IMF’s Aid Increased Foreign Reserves by Over $1 Billion

The country’s foreign exchange assets have increased by $1.18 billion due to financial assistance received from the International Monetary Fund.

As per the official data released by the State Bank of Pakistan, the liquid foreign reserves of the country surged to $18.463 billion as of April 24.

The country received $1.39 billion from the IMF under the Rapid Financing Instrument (RFI) due to the economic impact of the Covid-19 shock.

The central bank has also paid out an external debt of $234 million to the government.

In general, SBP reserves were up $1.181 billion to $12.07 billion. Commercial banks hold foreign-exchange reserves at $6.39 billion. It is important to note here that the financial assistance offered by the IMF is not aid and is to be paid back in later years by the appropriate government.

As per the IMF, the RFI provides quick and low-access financial aid to member countries facing an urgent balance of payments need, without the need to have a full-fledged program in place.

It can provide resources to address a wide range of urgent needs, including those resulting from commodity price shocks, natural disasters, post-crisis and crises, and fragile emergencies.



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