International Monetary Fund approves $1.29bn tranche for Pakistan
Islamabad, Hilal Ahmad, December 9, AZERTAC
The International Monetary Fund's (IMF) Executive Board has approved $1.29 billion for Pakistan under the $7 billion Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
The funds will be disbursed this week which will bolster Pakistan’s foreign exchange reserves.
The IMF Board met in Washington to review the second EFF review and the release of the third tranche, worth over $1 billion, as well as the first RSF tranche aimed at tackling climate induced challenges. The IMF approved Pakistan’s latest loan of $1.29 billion in financial support to ensure that Pakistan’s ongoing IMF program remains on track.
Pakistani Prime Minister Muhammad Shehbaz Sharif has said that the IMF has approved the release of funds under the ongoing program due to the effective implementation of the government's economic reforms and measures. Moreover, IMF’s satisfaction with the effective implementation of economic reforms and measures in Pakistan is a testament to the hard work of the economic team.
The Prime Minister noted that the recent financial release by the IMF is proof that Pakistan is implementing the necessary measures for economic stability and development. After the approval of the tranche, Pakistan will receive almost $1 billion under the Extended Fund Facility and about $200 million under the Resilience and Sustainability Facility.
The IMF is of the opinion and has insisted that Pakistan should continue its reform agenda to firm its monetary policy and vigorously implement its policies to overhaul the institutions and Economy. The incumbent Pakistani government has in a large way tried to rebuild foreign exchange reserves and gained the confidence of investors.
The IMF’s financial support has always remained vital in stabilizing Pakistan’s economy. The approval from the IMF Executive Board comes after a staff-level agreement was reached in October this year between the Pakistani government and the IMF. Pakistan’s Prime Minister hoped that the time is not far when Pakistan will be completely debt-free and economically self-sufficient.
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