IMF approves $ 500m loan for Pakistan
ISLAMABAD – The International Monetary Fund (IMF) has approved the release of $500 million for Pakistan, the 8th installment of a $6.64 billion loan aimed at supporting inclusive economic growth in Pakistan.
The 8th installment of $500, which will be transferred to Pakistan next week, would help increase foreign exchange reserves of the country, which will cross the mark of 19 billion dollars that will be a record. The Fund approved the release of the new funds after a review of Pakistan’s economic performance.
The Executive Board of IMF approved disbursement of $504.8 million for Pakistan after completing the eighth review of Pakistan’s economic performance under a 36-month programme supported by an Extended Fund Facility (EFF) arrangement, according to IMF press statement received here on Tuesday. “The Executive Board’s decision enables the immediate disbursement of an amount equivalent to SDR 360 million (about US$504.8 million), bringing total disbursements to SDR 3.24 billion (about US$4.54 billion),” the statement said.
It is pertinent to mention here that the Fund had extended fund facility to Pakistan in September 2013 on the condition that it carry out extensive economic reforms especially in energy and taxation sectors. On September 4, 2013, the Executive Board approved the three-year extended arrangement under the EFF in the amount of SDR 4.393 billion (about U$S6.64 billion at the time of approval of the arrangement, or 425 per cent of Pakistan’s quota at the IMF).
The programme is aimed at supporting the country’s economic reform programme to promote inclusive growth. The Executive Board’s approval enabled an initial disbursement by the IMF of an amount equivalent to SDR 360 million (about US$544.5 million), and the remaining amount was to be evenly disbursed over the duration of the program, subject to the completion of quarterly reviews.