UPDATE: IMF's $1.1 billion installment to bring more economic stability to Pakistan: Premier Sharif

ADDS STATE BANK OF PAKISTAN CONFIRMING RECEIPT OF LOAN TRANCHE

By Islamuddin Sajid and Aamir Latif

ISLAMABAD (AA) - Pakistan’s Prime Minister Shehbaz Sharif on Tuesday said the release of the last installment of the International Monetary Fund (IMF) loan will bring "more economic stability" to the South Asian nation.

Welcoming the release of the remaining $1.1 billion, Sharif said the last tranche of the loan is expected to be released today.

"Receiving the last installment of 1.1 billion dollars from the IMF will bring more economic stability to Pakistan," Sharif said in a statement.

The State Bank of Pakistan confirmed in a statement that it received SDR 828 million ($1.1 billion) in its account from the IMF.

With the latest tranche, Pakistan’s total foreign reserves stand at $14.13 billion, with $5.34 billion held by commercial banks.

On Monday, IMF said that the Executive Board completed the second review and allowed for an immediate disbursement of around $1.1 billion, bringing the total disbursements under the arrangement to about $3 billion.

"The agreement with the IMF was crucial in saving Pakistan from default during the 16-month government," said Sharif, adding that he has made difficult decisions for the economic security of his country.

Last month, the global lender said it reached a staff-level agreement with Pakistan on the final review of a $3 billion bailout package.

The announcement came after the IMF team’s week-long visit to Islamabad.

Last June, the IMF approved a crucial nine-month arrangement with Pakistan to aid its economic stabilization program.

With the release of $1.1 billion, the South Asian country's foreign reserves would rise to over $14 billion.

Pakistan Finance Minister Muhammad Aurangzeb recently said that Pakistan has initiated a discussion with the IMF and wants to enter into a larger and extended program with the global lender.

A faltering economy and a surging cost of living crisis, exacerbated during Sharif’s previous tenure, brought the country to the verge of default before it secured a last-minute bailout from the IMF in July last year. His government, though, blamed the previous administration of Imran Khan for the dire economic situation.

A World Bank report recently revealed that over 12 million Pakistanis have fallen below the poverty line over just the past year. Currently, almost 40% of the country’s population of some 240 million is living below the damning threshold.