On August 23, Pakistan will receive $2.77 billion from the International Monetary Fund (IMF) as part of the organization’s efforts to maintain global financial liquidity in the face of the COVID-19 epidemic.
This development was announced by Finance Minister Shaukat Tarin during a press briefing here on Thursday. He further stated that the monies will be transferred straight to the State Bank of Pakistan (SBP), thereby increasing the country’s FX reserves and stabilizing the economy.
According to Tarin, the monies represent a “unconditional” allocation from the global lender, implying that they will be used productively and efficiently to rebuild resources lost due to the coronavirus.
Aside from the aforementioned development, it should be noted that on August 2, the IMF in principle approved a broad distribution of Special Drawing Rights (SDRs) totaling $650 billion in an effort to balance out liquid financial assets around the world.
The funding is aimed specifically at disadvantaged countries suffering from the COVID-19 pandemic. Other member countries will benefit from these monies as well, restoring trust, becoming more resilient, and alert to any future disparities that endanger their economy.
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