IMF approves 2nd tranche of $450m for Pakistan

The International Monetary Fund (IMF) has approved second tranche worth of $450 million for Pakistan under the $6 billion Extended Fund Facility in a meeting of its executive board in Washington.

The IMF in its board meeting said that Pakistan’s economic reform program is on track while decisive policy implementation by the Pakistani authorities is helping to preserve economic stability in the country.

IMF said that the authorities remain committed to expanding the social safety nets, reducing poverty, and narrowing the gender gap.

The federal government of Pakistan had received the first tranche from IMF post-approval of the under the extended loan programme of $6 billion.

Earlier in November, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Abdul Hafeez Shaikh had said that IMF, after holding successful dialogues, showed agreement to release the second tranche amounting to $450 million loan to Pakistan.

Addressing a press conference along with his economic team in Islamabad, Abdul Hafeez Shaikh said that IMF mission expressed confidence and lauded the incumbent government over meeting all performance criteria.

He had maintained, “We have returned $2.4bn loan taken by the previous government and added that the PTI-led government did not borrow a single penny from the State Bank of Pakistan during the current fiscal year.”

It is noteworthy to mention here that Pakistan has demanded to deal with the Financial Action Task Force (FATF) matters separately from the IMF bailout package. The federal government has also sought the elimination of the condition for guaranteeing the financial body for the issuance of bonds.