current affairs MCQ #7541

Which facility label denotes the stabilization centered IMF arrangement often referenced for Pakistan amid acute balance-of-payments stresses around mid-2023 program restoration discussions?

current affairs MCQ #7541

  1. Question 1

    Q1. Which facility label denotes the stabilization centered IMF arrangement often referenced for Pakistan amid acute balance-of-payments stresses around mid-2023 program restoration discussions?

    • A) Stand-By Arrangement SBA
    • B) Extended Credit Facility marketed as long poverty loan
    • C) World Bank IDA grant window mislabeled IMF
    • D) Regional currency union swap marketed as IMF credit

    Answer: Stand-By Arrangement SBA

    Explanation: The IMF Stand-By Arrangement (SBA) is the standard short-term stabilisation instrument used to address acute balance-of-payments crises; Pakistan's nine-month $3 billion SBA approved in July 2023 was the critical programme that prevented a sovereign default and provided breathing room for the subsequent EFF.