IMF chief hails Pakistan on staff’s ‘safe & swift evacuation’ from Kabul

Pakistan receives US$2.75 billion from IMF


ISLAMABAD, Managing Director International Monetary Fund (IMF) Kristalina Georgieva has sent a note of thanks to Prime Minister Imran Khan, expressing gratitude over the “safe and swift evacuation” of its staff from Afghanistan

“| 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 shared by the PM Office on Tuesday.

The IMF head especially appreciated the “instrumental roles” played by Pakistan’s ministers of Foreign Affairs, Finance, and Defence, as well as the Governor 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.

The letter written by the IMF head to Prime Minister Imran Khan – PM Office photo

“Thank you very much, from the bottom of my heart,” she added.

Georgieva said IMF was grateful for the partnership with Pakistan and looked forward to continuing the cooperation.

She also extended best wishes to Prime Minister Imran Khan and the people of Pakistan.

The State Bank of Pakistan (SBP) has received US$ 2.75 billion from the International Monetary Fund (IMF), as part of Special Drawing Rights (SDR) allocation announced by the fund recently, the central bank confirmed through a tweet here Tuesday.

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

It is pertinent to mention here that Pakistan was due to receive the amount on August 23 from International Monetary Fund’s (IMF) general allocations of $ 650 billion that had been approved to boost global liquidity amid the coronavirus pandemic across the globe.

The amount was directly transferred to the State Bank of Pakistan (SBP), which had further improved the country’s foreign exchange reserves and is expected to have good impact on the economy.

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.

According to 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.

Meanwhile, IMF Managing Director, Ms. Kristalina Georgieva said in a statement that the allocation was 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 were being distributed to countries in proportion to their quota shares in the IMF. This means about US$275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases.

“SDRs are a precious resource and the decision on how best to use them rests with our member countries. For SDRs to be deployed for the maximum benefit of member countries and the global economy, those decisions should be prudent and well-informed,” she added.

She said that to support countries, and help ensure transparency and accountability, the IMF has been providing a framework for assessing the macroeconomic implications of the new allocation, its statistical treatment and governance, and how it might affect debt sustainability.

The IMF will also provide regular updates on all SDR holdings, transactions, and trading – including a follow-up report on the use of SDRs in two years’ time, she added.

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