ISLAMABAD ( Web News )
The International Monetary Fund (IMF) has approved 6th tranche of Extended Fund Facility programme for Pakistan, Finance Minister Shaukat Tarin said Wednesday.
“I am pleased to announce that IMF Board has approved 6th tranche of their programme for Pakistan,” the Federal Minister for Finance and Revenue tweeted.
The IMF mission led by Ernesto Ramirez Rigo had held virtual discussions during October 4–November 18, 2021 in the context of the 2021 Article IV consultations and the sixth review of the authorities’ reform program supported by the IMF’s Extended Fund Facility (EFF).
The Pakistani authorities and IMF staff had reached a staff-level agreement on policies and reforms needed to complete the sixth review under the EFF, however the agreement was subject to approval by the Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms.
Now, after the approval, the fund would provide available SDR 750 million (about US$1,059 million) loan to Pakistan, bringing the total disbursements under the EFF to about US$3,027 million
An additional SDR 1,015.5 million (about US$1,386 million) was disbursed in April 2020 to help Pakistan address the economic impact of the COVID-19 shock.
It is pertinent to mention here that the fund had approved $6 billion, three-year loan facility for Pakistan back in July 2019 to help resuscitate the country’s ailing economy.
“Alhamdulillah, the IMF board has completed sixth review board of Pakistan and decided to release $1billion tranche to Pakistan,” the minister tweeted.
He said the decision would not only help stabilise the economy, but also ensure completion of reforms process.