IMF board approves $1.059 billion tranche for Pakistan

IMF board approves $1.059 billion tranche for Pakistan

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) on Wednesday approved sixth tranche under $6 billion Extended Fund Facility (EFF) for Pakistan.

Finance Minister Shaukat Tarin announced this in a Tweet. “I am pleased to announce that IMF Board has approved 6th tranche of their program for Pakistan.”

Pakistan will get around $1.059 billion after the IMF Board approval. The IMF on November 21, 2021 stated that its staff had completed the sixth review and the release of next tranche was subject to approval from the executive board, which was to be scheduled to meet on January 12, 2021.

READ MORE: IMF wants Pakistan to improve tax to GDP ratio to 20%

The IMF also linked the approval of the next tranche with certain conditions, including autonomy of State Bank of Pakistan (SBP) and withdrawal of tax exemptions to the tune of around Rs350 billion.

READ MORE: Pakistan to emerge as food surplus country: PM Imran

Pakistan had requested to extend the date for scheduled meeting of the IMF board up to January 28, 2022 and later it was further requested to extend up to February 02, 2022.

READ MORE: IMF intervention to add economic miseries of Pakistan

In meantime, the government presented and got approval the Finance (Supplementary) Act, 2022 and SBP Amendment Act to comply with the conditions of the IMF.

Analysts said that the transfer of latest IMF tranche would help the country to improve foreign exchange reserves besides it would also support the Pak Rupee (PKR).

READ MORE: SBP responds to misconceptions on amendments to State Bank Bill

Leave a Reply

Your email address will not be published. Required fields are marked *