ISLAMABAD: The International Monetary Fund (IMF) has approved the release of the next loan tranche of around $500 million for Pakistan.
According to the declaration released by the IMF, the approval was given after reviewing Pakistan’s progress in line with the program in the Board of Directors (BoD) meeting.
The board’s approval has paved the way for the release of $500 million third loan tranche. Out of the $6 billion, the IMF has already disbursed $1.45 billion in two tranches, bringing the total disbursements to $2 billion.
The IMF has appreciated Pakistan’s policies of bringing reforms in the economic sector.
In November last year, the second tranche of IMF loan designated for Pakistan, worth 450 million rupees was approved.
Prior to the development, the international body had emphasized to further reduce the fiscal deficit by making a cut in government’s expenses, exemption and subsidies in different sectors and a major rise in the number of taxpayers and.
During the stay of the IMF mission in Pakistan, the economic team had briefed the institution over the financial statistics which witnessed a reduction of 32 percent in term of the current account deficit; 64 pc declivity in the first quarter of the current financial year and 50 pc decrement in the fiscal deficit.