Wednesday, October 5, 2022

Pakistan receives IMF’s first tranche of $ 1 billion today

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ISLAMABAD: Pakistan to get first tranche of International Monetary Fund (IMF) approved loan today (Monday), ARY News reported.

Pakistan will be awarded $1 billion out of the $ 6 billion approved by the international body.

According to details, the IMF would pay the amount in full the allocation of which has been divided into three parts and three years with Pakistan getting $ 2 billion each year.

The money would help stabilized Pakistan’s dwindling economy and help Pakistan somewhat alleviate fiscal debt and inflation.

Read More: Pakistan to receive additional funds from ADB, WB following IMF deal

Pakistan is slated to receive the fund under IMF’s extended loan program.

The Executive Board of the International Monetary Fund (IMF) in its Washington meeting on July 3 approved $6 billion loan for Pakistan under its bailout programme.

Pakistan’s government and the IMF had already signed staff agreement on May 12. The Executive Board of the IMF will give its final nod to the agreement under which Pakistan will receive six billion dollars loan package from the lender in three years under the extended fund facility.

The final budget measures passed by the assembly along with a report on compliance with all prior actions will be key elements in the board’s decision to grant Pakistan’s request for a $6 billion bailout facility. The approved version of the budget and finance bill are expected to be transmitted to the Fund.

The government in its budget proposals for the next financial year has added Rs. 357 billion loan from the IMF.

Read More: Pakistan will turn to overseas bonds market after IMF bailout: Hafeez Shaikh

An IMF team will visit Islamabad every three months to review economic indicators of the country.

The government has already fulfilled all IMF’s conditions before signing of agreement, sources said.

The Economic Coordination Committee (ECC) of the Cabinet recently given the approval to increase the natural gas prices, one of the conditions of the IMF for its bailout package.

The ECC also approved to hike the natural gas tariff for domestic consumers by 190 pct and on average 31pc for all other categories.

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