The International Monetary Fund (IMF) Executive Board completed the first review of the $3-billion Stand-By Arrangement, allowing for an immediate disbursement of $700 million, Pakistan’s Ministry of Finance announced on Thursday night.

“The Executive Board of the IMF completed the 1st review and allows for an immediate disbursement of SDR 528 million (around US$ 700 million) bringing the total disbursements under the SBA to US$ 1.9 billion,” the ministry said in a post on X, formerly known as Twitter.

The development comes after the IMF and Pakistan authorities reached a staff-level agreement on November 15 on the first review under the SBA.

The current IMF programme is scheduled to end in the second week of April.

The Fund released $1.2 billion as the first tranche in July, 2023.

After the latest approval, nearly $1.1 billion will be left to be disbursed.

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The development holds significance for Pakistan’s economic landscape as the country faces a low level of foreign exchange reserves amid repayments and low non-debt creating dollar inflows.

Currently, foreign exchange reserves held by the State Bank of Pakistan stand at $8.15 billion as of January 5.