IMF approves second tranche of $452.5 million to Pakistan

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) on Thursday has completed the first review of Pakistan’s economic performance and approved $452.5 million second tranche under the Extended Fund Facility (EFF).

The IMF has once again supported the tight monetary policy stance besides emphasizing the need to “timely and regularly” increase the electricity tariffs the two issues that have invited a lot of criticism in Pakistan from independent policy experts and economists.

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The approval came after the Executive Board of IMF completed the first review of Pakistan’s economic performance under the EFF, said a press release issued by the lender.

The completion of the review will allow the authorities to draw about US$ 452.4 million, bringing total disbursements to about US$ 1,440 million, said the fund.

Earlier in November, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Abdul Hafeez Shaikh had said that IMF, after holding successful dialogues, showed agreement to release the second tranche amounting to $450 million loan to Pakistan.

Addressing a press conference along with his economic team in Islamabad, Abdul Hafeez Shaikh said that the IMF mission expressed confidence and lauded the incumbent government over meeting all performance criteria.

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He had maintained, “We have returned $2.4bn loan taken by the previous government and added that the PTI-led government did not borrow a single penny from the State Bank of Pakistan during the current fiscal year.”

It is noteworthy to mention here that Pakistan has demanded to deal with the Financial Action Task Force (FATF) matters separately from the IMF bailout package. The federal government has also sought the elimination of the condition for guaranteeing the financial body for the issuance of bonds.