IMF approves $500mln loan for Pakistan

ISLAMABAD: The International Monetary Fund (IMF) has approved the release of $500 million for Pakistan, the 8th installment of a $6.64 billion loan aimed at supporting inclusive economic growth in the country, a statement said on Tuesday.
The 8th installment of $500 million, which will be transferred to Pakistan next week, would help increase the foreign exchange reserves of the country that will cross the record mark of $19 billion.
The IMF approved the release of the new funds after the review of Pakistan s economic performance, it said, adding that the Executive Board of the IMF approved disbursement of $504.8 million for Pakistan after completing the eighth review of Pakistan s economic performance under a 36-month programme supported by an Extended Fund Facility (EFF) arrangement. The Executive Board's decision enables the immediate disbursement of an amount equivalent to SDR 360 million (around $504.8 million), bringing the total disbursements to SDR 3.24 billion (around $4.54 billion), the statement said.
The IMF had extended fund facility to Pakistan in September 2013 on the condition that it carries out extensive economic reforms, especially in the energy and taxation sectors.
On September 4, 2013, the IMF Executive Board approved the three-year extended arrangement under the EFF amounting SDR 4.393 billion (around $6.64 billion at the time of the approval of the arrangement, or 425 percent, of Pakistan's quota at the IMF). The programme is aimed at supporting the country's economic reform programme to promote inclusive growth.
The Executive Board's approval enabled an initial disbursement by the IMF of an amount equivalent to SDR 360 million (around $544.5 million) and the remaining amount was to be evenly disbursed over the duration of the programme subject to the completion of the quarterly reviews.