KARACHI: The International Monetary Fund (IMF) revived Pakistan’s $6 billion loan program after the country met several conditions of the global lender in recent weeks, the country’s finance chief confirmed in a social media post on Wednesday.
Pakistan went to the IMF in November 2018 to shore up its dwindling foreign exchange reserves and avert a balance of payment crisis. While it managed to secure $6 billion Extended Fund Facility in July 2019, the flow of money was made contingent on the implementation of strict economic reforms and periodic reviews.
Last year in November, the two sides reached a staff level agreement on the continuation of the loan program after it stalled in March due to economic and financial differences. However, it was subject to the approval by the IMF executive board which was interested to see implementation of structural reforms in Pakistan.
“I am pleased to announce that IMF Board has approved 6th [tranche] of their programme for Pakistan,” the country’s finance minister Shaukat Tarin announced in a Twitter post.
I am pleased to announce that IMF Board has approved 6th traunche of their programme for Pakistan.
— Shaukat Tarin (@shaukat_tarin) February 2, 2022
The fund’s executive board was scheduled to meet in mid-January, though the meeting was postponed until February on Pakistan’s request.
The IMF had given the country a five-point action plan that included increase in energy tariffs, withdrawal of general sales tax and passing of the State Bank of Pakistan (Amendment) Bill.
The government got parliamentary approval for its supplementary finance bill along with the legislation related to the central bank autonomy.
The revival of the fund’s program will make available $1,059 million to Pakistan, bringing total IMF disbursements to about $3,027 million.
It will also help unlock significant funding from bilateral and multilateral partners, according to financial experts.