Daily Times

ISLAMABAD: Pakistan will need to take difficult decisions in future due to the International Monetary Fund (IMF) programme. Governor of State Bank Of Pakistan Reza Baqir said this.

He asserted this during his speech at a conference on business leaders on Wednesday.

The SBP governor said Pakistan had overcome the threat of COVID-19. The positivity rate of the infection is now “much lower than the global rate”.

The Pakistan government, he said, made sure of quick disbursement of financial assistance during the coronavirus pandemic. It gave loans of Rs2 trillion to business persons. The government spent Rs430 billion on new investment. And allocated Rs240 billion for loans on easy conditions, the publication reported.

Baqir said the income of people has increased as the growth rate has increased from a minus level to 4%.

Foreign remittances, too, increased by 27% during the last fiscal year. The trend continues this year as well, he explained.

SBP governor’s meeting with PM Imran Khan

The SBP governor also met Prime Minister Imran Khan. He briefed him over the progress of the Roshan Digital Accounts.

He gave a briefing on a Roshan Digital Account programme. He said that as many as 204,000 accounts have so far been opened by overseas Pakistanis. A 1,000 accounts are being opened on a daily basis. He said that so far, they have received $2.3 billion in the accounts.

PM Imran Khan said that increase in the number of accounts under the programme is a sign of confidence. This is a sign from overseas Pakistanis in the incumbent government.

On August 18, it was reported that the Roshan Digital Account (RDA) programme has crossed a major milestone. It hit the $2 billion mark as overseas Pakistanis continued to pose trust in the central bank’s initiative. The initiative was launched in September last year.

Pakistan gets $2.75 billion from IMF

Last month, the SBP received $2.75 billion from the IMF. It was as a part of the Special Drawing Rights (SDR) allocation announced by the fund recently.

“SBP has received US$2.75 billion from the IMF, as part of SDR allocation. IMF announced it recently,” the central bank had tweeted.

Pakistan was due to receive the amount on August 23 from IMF’s general allocations of $650 billion. IMF approved that to boost global liquidity amid the coronavirus pandemic across the globe.

IMF directly transferred the amount to the SBP, which has further improved the country’s foreign exchange reserves. It will have a good impact on the economy as per the expectations.

The Board of Governors of the IMF had approved a general allocation of SDRs equivalent to $650 billion. They approved it on on August 2, 2021 to boost global liquidity.

According to the IMF statement, the allocation would benefit all members. It will address the long-term global need for reserves, build confidence, and foster the resilience. Along with fostering the stability of the global economy.

It would particularly help the most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.