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Pakistan receives $498.7 million IMF tranche

KARACHI: Pakistan has received $498.7 million under Extended Fund Facility (EFF) from International Monetary Fund (IMF), State Bank of Pakistan (SBP) said on Tuesday.

The central bank said that it had received IMF tranche of $498.7 million (equivalent to SDR 350 million) under the Extended Fund Facility.

On March 24, 2021 the Executive Board of the International Monetary Fund (IMF) allowed disbursement of $500 million under Extended Fund Facility (EFF) for Pakistan.

The IMF board completed the second through fifth reviews of the Extended Arrangement under the EFF for Pakistan. The board’s decision allows for an immediate disbursement of SDR 350 million (about US$500 million), bringing total purchases for budget support under the arrangement to about US$2 billion, said a statement issued by the IMF.

Pakistan’s 39-month EFF arrangement was approved by the Executive Board on July 3, 2019 about $6 billion at the time of approval of the arrangement, or 210 percent of quota.

The program aims to support Pakistan’s policies to help the economy and save lives and livelihoods amid the still unfolding Covid-19 pandemic, ensure macroeconomic and debt sustainability, and advance structural reforms to lay the foundations for strong, job-rich, and long-lasting growth that benefits all Pakistanis.