IMF’s historic funding takes effect, $2.7bn for Pakistan

The International Monetary Fund’s (IMF) largest-ever allocation of $650 billion in Special Drawing Rights (SDR) became effective on Monday and can bring about $2.7 billion of additional funding for Pakistan as well.

“The largest allocation in history … is a significant shot in the arm for the world,” IMF Managing Director Kristalina Geor­gieva said in a statement issued in Washington. “If used wisely, (this is) a unique opportunity to combat this unprecedented crisis.”

The total amount of $650 billion will be distributed among member states in accordance with their quota of the Special Drawing Rights (SDRs). The break-up can bring about $2.7 billion to Pakistan, diplomatic sources say.

The SDR is an interest-bearing international reserve asset created by the IMF. A basket of currencies determines its value. The SDR value in terms of the US dollar is determined daily. SDRs can be held and used by member countries.