The State Bank of Pakistan on Wednesday confirmed receiving US$1.39 billion under the Rapid Financing Instrument of the International Monetary Fund (IMF) in a bid to fight off coronavirus spread within the country.
The central bank confirmed receipt of IMF aid through a tweet reading, “SBP has received $1.39bn under Rapid Financing Instrument by the IMF.”
Pakistan has recorded over 200 deaths and experts have voiced fear that the country of 215 million people could see a rapid and devastating increase due to its shortage of medical infrastructure and crowded cities.
The IMF had approved the disbursement of the amount on April 17. The Rapid Financing Instrument addresses emergencies and does not subject a country to a full-fledged reform programme that undergoes review.
“While uncertainty remains high, the near-term economic impact of COVID-19 is expected to be significant, giving rise to large fiscal and external financing needs,” the international lender had said in a statement.
“The domestic containment measures, coupled with the global downturn, are severely affecting growth and straining external financing,” said Geoffrey Okamoto, the IMF’s first deputy managing director.
“This has created an urgent balance of payments need,” he said.
The IMF official, at the time, had voiced support for actions taken in Pakistan including a boost in spending on public health and the social safety net to brace for a worsening crisis.
“Crucially, the authorities are increasing public health spending and strengthening social safety net programs to provide immediate relief to the most vulnerable,” Okamoto said.
He also credited the central State Bank of Pakistan with measures that have included lowering its benchmark rate and supporting liquidity.
Pakistan is a longtime recipient of help from the IMF and is already the recipient of a three-year, $6 billion programme that was approved last year.
