The International Monetary Fund (IMF) will release a further $510 million to Pakistan as part of a loan approved in 2013, after a successful review of the country’s economic performance in line with the IMF’s proposed reforms.
The approval for the release of next tranche of the loan came after a meeting between the IMF and Pakistani officials in Dubai. Official meeting have held in a third country of late due to security concerns in Pakistan.
The IMF approved the $6.6 billion loan in 2013 under its 3-year Extended Fund Facility (EFF) after Pakistan came dangerously close to default on its external payments. The government has since implemented reforms which has put the country’s economic growth back on the upward trajectory.
A statement issued after the meeting, the IMF quoted Harald Finger, IMF chief for Pakistan, saying that they had a productive meeting and that Pakistan had met performance criteria for the release of the nest installment of the loan.
The Fund expressed satisfaction over the robust growth in spite of weak cotton crop and declining exports.
“Real GDP growth is expected to reach 4.5 percent in FY 2015/16 and 4.7 percent in FY 2016/17, helped by favorable oil prices, rising investment, including related to the China Pakistan Economic Corridor (CPEC), improvements in energy supply, buoyant construction activity, and acceleration of credit growth.”
Pakistan’s GDP is projected to grow at 4.5 percent in the current fiscal year ending June 30, and 4.7 percent in the next year, the IMF said.