IMF board okays $6bn loan for Pakistan
The IMF executive board on Wednesday approved a 39-month extended arrangement under the Extended Fund Facility (EFF) for Pakistan for an amount of US 6 billion (SDR 4,268 million) to support its economic programme.
The Fund said in aa statement that the EFF-supported program is intended to help Pakistan “reduce economic vulnerabilities and generate sustainable and balanced growth focusing on - a decisive fiscal consolidation to reduce public debt and build resilience while expanding social spending; a flexible, market-determined exchange rate to restore competitiveness and rebuild official reserves; to eliminate quasi-fiscal losses in the energy sector; and to strengthen institutions and enhance transparency”.
The fund also said the board’s approval allows for an immediate disbursement of about $1 billion (SDR716 million). “The remaining amount will be phased over the duration of the program, subject to four quarterly reviews and four semi-annual reviews.,” it added.