21 °C Prince George's County, US
May 27, 2020

IMF to Release $510 Million to Pakistan Under 3-Year Loan

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.

Related articles

Pakistan Gets $501 Million From IMF Under 3-year Loan

The International Monetary Fund has approved the immediate release of $501 million to Pakistan under a 3-year Extended Fund Facility, lauding the government’s efforts for fiscal consolidation and widen the tax net. The Executive Board of the Fund met in Washington on June 27 and accorded approval to the 11the review of Pakistan’s economic performance. […]

U.S. Appreciates Pakistan’s Economic Achievements as “Remarkable”

Islamabad — Special Assistant to the U.S. President for National Security Council for South Asian Affairs, Dr. Peter Lavoy, appreciated Pakistan’s economic turnaround during a meeting with Finance Minister Ishaq Dar in Islamabad. The US envoy described the economic successes as a “remarkable success story” and also appreciated the successful conclusion of the 8th IMF […]