Home General SBP receives $2.75 billion from IMF

SBP receives $2.75 billion from IMF

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KARACHI: The State Bank of Pakistan (SBP) on Tuesday received $2.75 billion from the International Monetary Fund (IMF) as part of the Special Drawing Rights (SDR) allocation announced by the Fund recently.
In a tweet, the central bank announced, “#SBP has received US$ 2.75 billion from the IMF, as part of SDR allocation announced by the IMF recently.”
The amount was directly transferred to the State Bank of Pakistan (SBP), which has further improved the country’s foreign exchange reserves which stand at the highest level ever.
The Board of Governors of the IMF had approved a general allocation of SDRs equivalent to US$650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity amid the coronavirus pandemic across the globe.
According to the IMF statement, the allocation would benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy. It would particularly help most vulnerable countries struggling to cope with the impact of the Covid-19 crisis.
On Monday last, IMF Managing Director Kristalina Georgieva said in a statement that the allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis.
“The SDR allocation will provide additional liquidity to the global economic system – supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis,” she said.
She said that SDRs are being distributed to countries in proportion to their quota shares in the IMF. This means about $275 billion are going to emerging and developing countries, of which low-income countries will receive about $21 billion – equivalent to as much as 6 percent of GDP in some cases.
Meanwhile, the International Monetary Fund (IMF) on Tuesday thanked Pakistan for swiftly evacuating its staff members and their families from Afghanistan after the fall of Kabul on August 15.
IMF Managing Director Kristalina Georgieva sent a note of thanks to Prime Minister Imran Khan, besides a tweet, expressing gratitude over the “safe and swift evacuation” of its staff from Afghanistan
She tweeted, “#Pakistan’s efforts at the highest levels were absolutely critical to the safe and swift evacuation of IMF staff and their families from #Afghanistan. My heartfelt thanks to @ImranKhanPTI for Pakistan’s exceptional assistance in very difficult circumstances!”
In the letter shared by the PM Office on Tuesday, the IMF chief said, “I wish to offer my deep and sincere gratitude on behalf of the International Monetary Fund and its staff for Pakistan’s assistance, in the safe and swift evacuation of Fund personnel and their families from Afghanistan,” reads the letter dated 23 August 2020, as .
The IMF head especially appreciated the instrumental roles played by Pakistan’s ministers of foreign affairs, finance, and defence, as well as the governor of State Bank of Pakistan. “Pakistan’s efforts at the highest levels, amid immensely difficult and complex circumstances, to help the Fund by securing a corridor to the airport and arranging the convoy that included our staff, were absolutely critical to this successful evacuation,” she said.
“Thank you very much, from the bottom of my heart,” she added.
Georgieva said IMF is grateful for the partnership with Pakistan and looks forward to continuing the cooperation. She also extended best wishes to Prime Minister Imran Khan and the people of Pakistan.
Thousands of diplomats and foreign workers were desperate to fly out of Afghanistan after the Taliban victoriously entered Kabul about 20 years after their government was toppled by the invading American forces. Among the people who wanted to leave the war-battered country were the staff members of international financial institutions like the IMF and the World Bank who were evacuated by the Pakistani authorities.
According to Information Minister Fawad Chaudhry, the country has evacuated 1,600 people from Kabul, including diplomats, journalists and other foreign nationals, since the fall of Kabul.
Interior Minister Sheikh Rashid Ahmed also announced that Pakistan is issuing one-month visas-on-arrival to all foreigners fleeing Kabul to Islamabad. – TLTP