Islamabad: The International Monetary Fund (IMF) on Friday approved the release of another installment of a USD 6 billion, three-year loan to Pakistan. The IMF issued a press statement according to which the end-September performance criteria were met by Islamabad, reported The News International.
This comes as the IMF mission led by its chief Ernesto Ramirez Rigo is visiting Pakistan from November 8 to November 20. The international money lender and Pakistan reached a staff-level agreement on policies and reforms needed to complete the first review under the Extended Fund Facility.
“The Pakistani authorities and the IMF staff have reached a staff-level agreement on policies and reforms needed to complete the first review under the EFF. The agreement is subject to approval by IMF management and the Executive Board of Directors. Completion of the review will enable disbursement of SDR 328 million (or around USD $ 450 million) and will help unlock significant funding from bilateral and multilateral partners.”
The first tranche of USD 6 billion–1 billion– was received by Pakistan, which is grappling to overcome a severe financial crisis, on July 9.
The three-year bailout package was approved by the IMF’s Executive Board last week.
“IMF Executive Board approved today a three-year US$6 billion loan to support Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living,” Gerry Rice, the IMF’s spokesperson had confirmed the news on Twitter on July 3.
The Asian Development Bank has also announced plans to lend USD 10 billion to Pakistan for various development projects over the next five years.
Besides the assistance by the global finance body, China, the UAE, Qatar and Saudi Arabia have provided a bailout package to Pakistan.
China has given Pakistan USD 4.6 billion in the shape of deposits and commercial loans while Saudi Arabia has announced a bailout package worth USD 3 billion in addition to USD 3.2 billion oil facility on deferred payments.
The UAE has provided a bailout package of USD 2 billion to Pakistan. On June 30, Qatar has deposited the first tranche of USD 500 million in the State Bank of Pakistan.