IMF okays $1bn loan tranche for Pakistan

The Executive Board of the International Monetary Fund (IMF) on Wednesday approved $1billion loan for Pakistan under the Extended Fund Facility (EFF), ARY News reported.

This was confirmed by Federal Minister for Finance and Revenue Shaukat Tarin in a post shared on his official Twitter handle.

“I am pleased to announce that IMF Board has approved 6th tranche of their programme for Pakistan,” he wrote.

I am pleased to announce that IMF Board has approved 6th traunche of their programme for Pakistan.

— Shaukat Tarin (@shaukat_tarin) February 2, 2022

A session of the International Monetary Fund (IMF) Executive Board for review of Pakistan’s economy was held in Washington on Wednesday.

The Sixth Review and release of $1 billion tranche under the Extended Fund Facility (EFF), scheduled on January 12, 2022 and later January 28, was postponed twice earlier after receiving request from the Pakistani authorities.

Also Read: ‘Pakistan, IMF reach agreement over release of nearly US$1 bn’

The government sought postponement of the sixth review to the pass recommended fiscal tightening measures, including the Finance (Supplementary) Bill, 2021, popularly known as mini-budget, and State Bank of Pakistan Amendment Bill 2021.

On January 29, the Senate passed the State Bank of Pakistan (SBP), Amendment Bill, with the majority vote.

The bill was presented by Finance Minister Shaukat Tarin amid ruckus in the house by the opposition members. The SBP Amendment Bill was supported by 44 senators, while 43 voted against it.

In November, a finance ministry delegation reached a staff-level agreement with the IMF team after protracted talks in Washington.

It is pertinent to mention here that the next review (seventh) under the $6 billion EFF programme will be due in April 2022.