| Welcome to Global Village Space

Friday, May 24, 2024

IMF approves $700M tranche of $3B loan to Pakistan

Last June, IMF approved crucial 9-month arrangement to aid Pakistan's economic stabilization program

The International Monetary Fund completed its first review of Pakistan’s $3 billion economic reform program on Thursday, allowing the immediate disbursement of $700 million.

The Finance Ministry said in a statement that the IMF’s first review is completed and that $528 million in special drawing rights had increased total stand-by arrangement disbursements to $1.9 billion.

Read more: IMF Denies Tax Increase Reports

Muhammad Sohail, the head of Topline Securities, said: “IMF funding along with recent inflows from multilateral lenders will further help the Pak Rupee, which has been fairly stable for the last few months.”

“This new tranche will also help in getting rollovers from a few friendly countries and will ease external debt repayment pressure,” Daily Profit Pakistan Today reported.

Last June, the IMF approved a crucial nine-month arrangement with Pakistan to aid its economic stabilization program.

The approval led to an instant disbursement of $1.2 billion, with the remaining funds to be distributed over the program’s duration, contingent upon two quarterly reviews.

Read more: IMF Urges Tax Overhaul in Pakistan: Agriculture, Real Estate, and Retail Sectors Targeted

The ongoing IMF program is set to conclude in the second week of April.