IMF likely to approve second tranche of loan package to Pakistan today

WASHINGTON: The International Monetary Fund (IMF) is likely to approve the second tranche of the loan package to Pakistan in its meeting of executive board today, ARY News reported on Thursday.

The approval is expected after the finalisation of a policy-level agreement between Pakistan and IMF.

IMF officials have termed the economic performance of Pakistan in term of targets as satisfactory. After the approval from the IMF executive board, Islamabad will get the second tranche of loan worth $450 million.

The federal government of Pakistan had received the first tranche from IMF post-approval of the under the extended loan programme of $6 billion.

Earlier in November, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Abdul Hafeez Shaikh had said that IMF, after holding successful dialogues, showed agreement to release the second tranche amounting to $450 million loan to Pakistan.

Read: ‘Govt policies bearing fruit, economy stabilising, deficits narrowing’: IMF completes review

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.

Read: Pakistan to get IMF loan’s second tranche by end of this year

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.

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

It emerged earlier that the International Monetary Fund’s (IMF) first assessment of Pakistan’s economic progress ends on a positive note, Pakistan to get the second tranche of approved loan in December.

The second tranche of IMF loan designated for Pakistan, worth 450 million rupees will approximately be delivered to the country by the end of this year.

The IMF delegation held elaborated dialogues with Pakistan officials over the economic situation of the country, whereas, the IMF mission will respond to the government over reviewing its financial targets of grabbing Rs5500 billion tax collection in the current fiscal year, sources said.

It is noteworthy to mention here that Pakistan has demanded to deal with the Financial Action Task Force (FATF) matters separately from the IMF bailout package. The federal government has also sought the elimination of the condition for guaranteeing the financial body for the issuance of bonds.