IMF approves fourth tranche of $1.2bn for Pakistan

The International Monetary Fund (IMF) has approved fourth tranche of $1.2 billion for Pakistan, reported Dunya News on Wednesday.The decision to approve the fourth tranche of $1.2 billion has been taken in the IMF executive board meeting held Washington and the amount is expected to be received by Pakistan early next month. IMF had stressed to revoke subsidy on electricity and improvement in tax system during the meeting in Dubai earlier. The government has assured the IMF that Capital Value Tax (CVT) exemption given to plots less than 500 yards of area will be repealed from January 1, 2010. Pakistan had initially negotiated a $7.6 billion loan with the IMF in November 2008 but the loan was later increased to $11.3 billion in July 2009. The fund has so far disbursed $5.32 billion.