The State Bank of Pakistan’s foreign reserves were shored up with the release of a $700 million tranche by the International Monetary Fund (IMF). Following the successful completion of the first review under Stand By Arrangement (SBA), the tranche equivalent to $705.6 million was released on January 16. Market experts believe that Pakistan will need to continue with a tight fiscal policy and enter a new IMF program after the current SBA ends. The country’s improved economic situation, including a current account surplus and stable currency, is expected to lead to disinflation in the coming months. The release of the IMF tranche signals confidence in Pakistan and makes it more investable for foreign investors. Reforms are necessary for the success of privatization plans, and consistency is needed to reestablish investor confidence. The next review is expected to be smooth, but the challenge lies in implementing reforms under a new, larger IMF Program with the new government.