Pakistan receives first tranche of IMF loan: SBP

ISLAMABAD: Pakistan has received the first tranche of loan of $991.4 million from the International Monetary Fund (IMF) under the under Extended Fund Facility (EFF).

According to the State Bank of Pakistan (SBP), the country’s foreign exchange reserves now stand at above $15.0431 billion.

On Jul 3, the Executive Board of the International Monetary Fund (IMF) approved a 39-month extended arrangement under the Extended Fund Facility (EFF) for Pakistan for an amount of SDR 4,268 million (about US$6 billion or 210 percent of quota) to support the authorities’ economic reform program.

The EFF-supported program will help Pakistan to reduce economic vulnerabilities and generate sustainable and balanced growth focusing on: a decisive fiscal consolidation to reduce public debt and build resilience while expanding social spending; a flexible, market-determined exchange rate to restore competitiveness and rebuild official reserves; to eliminate quasi-fiscal losses in the energy sector; and to strengthen institutions and enhance transparency.

The Executive Board’s approval allowed for an immediate disbursement of SDR716 million (or about US$1 billion).

The remaining amount will be phased over the duration of the program, subject to four quarterly reviews and four semi-annual reviews.