IMF approves 6th tranche of $1 billion for Pakistan

IMF approves 6th tranche of $1 billion for Pakistan


IMF approves 6th tranche of $1 billion for Pakistan

ISLAMABAD (Dunya News) – International Monetary Fund (IMF) on Wednesday approved 6th tranche of its programme for Pakistan.

Finance minister, Shaukat Tarin, took to the Twitter and confirmed the news.

"I am pleased to announce that IMF Board has approved 6th tranche of their programme for Pakistan," Tarin wrote on his Twitter handle.

The IMF mission led by Ernesto Ramirez Rigo had held virtual discussions during October 4–November 18, 2021 in the context of the 2021 Article IV consultations and the sixth review of the authorities’ reform program supported by the IMF’s Extended Fund Facility (EFF).

The Pakistani authorities and IMF staff had reached a staff-level agreement on policies and reforms needed to complete the sixth review under the EFF, however the agreement was subject to approval by the Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms.

Now, after the approval, the fund would provide available SDR 750 million (about US$1,059 million) loan to Pakistan, bringing the total disbursements under the EFF to about US$3,027 million

An additional SDR 1,015.5 million (about US$1,386 million) was disbursed in April 2020 to help Pakistan address the economic impact of the COVID-19 shock.

It is pertinent to mention here that the fund had approved $6 billion, three-year loan facility for Pakistan back in July 2019 to help resuscitate the country’s ailing economy.