IMF to release second tranche of loan package: Hafeez Sheikh

ISLAMABAD: Adviser to Prime Minister on Finance, Revenue and Economic Affairs Abdul Hafeez Shaikh on Monday said that International Monetary Fund (IMF), after holding successful dialogues, approved to release the second tranche amounting to about $450 million loan to Pakistan, ARY News reported.

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 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.”

Talking about his team’s achievements, Hafeez Shaikh said that FBR’s recoveries increased by 16 per cent, stock market rose to 6 per cent since July and cement production climb to record 16 million tons.

Speaking on the occasion, the advisor said that trade deficit was gradually reducing and the economy was on the positive trajectory. He said that current account deficit was shrinking and foreign exchange reserves were increasing.

Hafeez Shaikh said that economic indicators of the country were on positive trajectory with growth rate projected to increase. The adviser said that dollar reserves were increasing and exchange rate of the rupee was on stabilization.

He said that the government had allocated Rs150 billion for the tribal districts in the current budget. Hafeez Shaikh said that the government was taking measures to control inflation and the menace of smuggling.

He said a very good deal was struck with traders of the country in which they were given incentives and also urged to become part of the documentation drive.

The adviser said president of World Bank in his recent visit also hailed the reforms in FBR, SBP and power sector among other areas. He said government has decided to allocate extra 30 billion rupees as subsidy for Naya Pakistan Housing Program.

Hafeez Shaikh said it had been decided to cancel sales tax refund bonds immediately and the amount to be given in the form of cash to exporters to help increase their productivity.

Responding to a question, he said the government was cognizant of the increase in prices of essential items and is working on various options to bring these down.