Pakistan has received $1.1 billion from the International Monetary Fund (IMF) in the final tranche of the $3 billion Stand-By Arrangement (SBA), the State Bank of Pakistan (SBP) said on Tuesday.

The development comes after the IMF on Monday completed its final review of Pakistan’s economic reform programme supported by the 9-month SBA and allowed immediate disbursement of $1.1 billion.

“Accordingly, SBP has received SDR 828 million (around US$ 1.1 billion) in value Apr 29, 2024 in its account from IMF. The amount shall be reflected in SBP’s foreign exchange reserves for the week ending on May 3, 2024,” the SBP said in its statement.

Foreign exchange reserves held by the central bank are standing at $7.981 billion as April 19.

“The disbursement will bring more economic stability in Pakistan,” PM Shehbaz said in a statement from his office, adding that the SBA was important in saving the South Asian nation from defaulting on its external liabilities.

Pakistan is now looking to secure a larger and longer Extended Fund Facility (EFF) of the IMF programme to achieve macroeconomic stability in the country.

On Sunday, Prime Minister Shehbaz Sharif called on the IMF managing director Kristalina Georgieva and reiterated his government’s commitment to put Pakistan’s economy back on track, state-run APP reported.

The meeting was held on the sidelines of the World Economic Forum Special Meeting in Saudi Arabia.

As per details, the prime minister apprised the IMF’s MD that he had directed his financial team, led by Finance Minister Muhammad Aurangzeb to carry out structural reforms, ensure strict fiscal discipline, and pursue prudent policies that would ensure macro-economic stability and sustained economic growth.

Both sides also discussed Pakistan entering into another IMF programme to ensure that the gains made in the past year were consolidated and its economic growth trajectory remained positive.