Islamabad: Pakistan has received an emergency loan of $1.39 billion from the International Monetary Fund (IMF) to cope with the coronavirus pandemic, pushing the countrys foreign currency reserves apparently to a one-month high above $12 billion, the media reported on Thursday.

“SBP (State Bank of Pakistan) has received $1.39 billion under the Rapid Financing Instrument (RFI) from the IMF,” the central bank said in a tweet on Wednesday.

The development, which was already expected, helped the Pakistani rupee to recover further ground against the US dollar, reports The Express Tribune.

Earlier, the foreign currency reserves had dropped to a four-month low at $10.97 billion on April 10, 2020, according to the SBP’s weekly update last week.

The reserves had partly depleted due to capital pullout worth around $2.69 billion by short-term foreign investors from Pakistan’s debt market over the past five to six weeks.

Many of them sold premature treasury bills and long-term Pakistan Investment Bonds (PIBs) in panic following the pandemic.

Foreign debt repayments also consumed the foreign currency reserves in the past four months.

The IMF executive board approved the low-cost emergency loan last week to help Pakistan meet the urgent balance of payments (international payments) needs in the face of the pandemic, according to a recent IMF statement.

“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,” it said.

Imran, Trump discuss COVID-19 pandemic over phone

Meanwhile, Pakistan Prime Minister Imran Khan and US President Donald Trump held a telephonic conversation to discuss the challenges being faced by the international community due to the coronavirus pandemic, its implications on global economy, and ways to mitigate its impact, it was reported.

In the phone call on Wednesday, the two leaders also exchanged views on regional issues and further strengthening of Pakistan-US cooperation, The Express Tribune quoted Aisha Frooqui, the spokesperson for the Ministry of Foreign Affairs, as saying in a statement.

Khan conveyed sympathies and condolences on the loss of thousands of lives in the US due to deadly disease.

The premier also highlighted Pakistan’s efforts to contain the spread of the virus and emphasised that the country was facing a dual challenge of overcoming the pandemic and saving people, particularly the most vulnerable segments of the population, from hunger due to lockdown.

He underlined that the government had put together a $8 billion package to support the affected people and businesses.

President Trump appreciated Khan’s telephone call and expression of support for the US efforts to combat COVID-19, The Express Tribune reported citing the statement as saying.

He also reassured of US support to Pakistan in the efforts to combat COVID-19 including by making available ventilators as well as in the economic arena.