IMF board approves $1.1 bln tranche for Pakistan

ISLAMABAD: The International Monetary Fund (IMF) board approved the seventh and eighth reviews of Pakistan’s bailout program, allowing for a release of about $1.1 billion to the cash-strapped economy.

The IMF agreed to extend the programmer by a year and increase the total funding by 720 million special drawing rights that will bring the total access under the EFF to about US$6.5 billion.

The Extended Fund Facility (EFF) programme was initially for 36 months and worth $6 billion at the time of its approval in 2019. It had stalled since earlier this year as Islamabad struggled to meet targets set by the lender.

IMF, in its press release, said that the authorities have taken important measures to address Pakistan s worsened fiscal and external positions resulting from accommodative policies in FY22 and spillovers from the war in Ukraine, and which have placed significant pressure on the rupee and foreign reserves.

The lender added that the immediate priority is to continue the steadfast implementation of the recently approved budget for FY23, adherence to a market-determined exchange rate, and pursuit of a proactive and prudent monetary policy. It is also important to continue to expand social safety to protect the most vulnerable and accelerate structural reforms including to improve the performance of state-owned enterprises (SOEs) and governance.