Pakistan has received a tranche of $705.6 million from the International Monetary Fund (IMF), said the State Bank of Pakistan (SBP) on Wednesday.

The development comes days after the IMF Executive Board completed the first review of the $3-billion Stand-By Arrangement (SBA).

“The SBP has received SDR 528 million (equivalent to $705.6 million) in value 16th January 2024 from IMF following successful completion of the first review by the Executive Board of IMF under Stand By Arrangement (SBA),” it said in a post on X.

“This disbursement will be reflected in SBP reserves for the week ending on 19th January 2024.”

The latest 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.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $66 million weekly, clocking in at $8.15 billion as of January 5, data released last Thursday showed.

Total liquid foreign reserves held by the country stood at $13.25 billion. Net foreign reserves held by commercial banks stood at $5.10 billion.

The SBP had attributed the decline in the reserves to debt repayments.