Daily News Analysis » April 2024 » IMF’s Stand-By Arrangement: 30 April 2024

IMF’s Stand-By Arrangement: 30 April 2024

The International Monetary Fund (IMF) has released USD 1.1 billion to Pakistan as part of a bailout package under its Stand-By Arrangement (SBA).

About IMF’s Stand-By Arrangement:

  • Purpose: Provides short-term financial assistance to countries facing balance of payments difficulties.
  • Users: Primarily used by advanced and emerging market countries; occasionally by low-income countries in conjunction with the Standby Credit Facility (SCF).
  • Eligibility: Available to all IMF member countries experiencing or anticipating external financing problems.
  • Conditionality: Requires countries to implement economic policies addressing their financial issues. Disbursements are contingent on meeting quantitative performance criteria and implementing critical structural measures.
  • Duration: Generally 12–24 months, extendable up to 36 months.

About IMF:

  • Objective: Promotes economic growth and stability by offering financial assistance and technical support to countries, aiding in balance of payments adjustment.
  • Establishment: Created in 1944 during the Bretton Woods Conference.
  • Notable Reports: Publishes the World Economic Outlook and the Global Financial Stability Report.
  • Headquarters: Located in Washington, D.C., USA

Why in News?

  • The International Monetary Fund (IMF) has released USD 1.1 billion to Pakistan as part of a bailout package under its Stand-By Arrangement (SBA).