Bailout package: Pakistan receives first tranche of $991.4 million from IMF

ISLAMABAD (92 News) – Pakistan’s central bank has received the first tranche of $991.4 million from the International Monetary Fund (IMF) out of $6 billion bailout package agreed between two sides. The amount will improve the country’s foreign exchange reserves. As of today, the country's foreign exchange reserves have increased by more than $15 billion, out of which reserves of the central bank have touched the mark of $8 billion. The executive board of IMF had formally approved a 39-month-long extended fund facility (EFF) worth $6 billion for Islamabad on July 3. According to sources, the government will have to fulfill toughest conditions set by the global lender before next tranche. In addition to power tariff hike set by National Electric Power Regulatory Authority (NEPRA), the government is bound to collect Rs10 trillion before September this year. Pakistan will receive $2 billion annually under the EFF for the period of three years. The amount would help Pakistan stabilise its crippling state of economy and recover from fiscal debt and inflation. Prime Minister Imran Khan and his team has already received monetary commitments valuing billions of US dollars from the global lenders including IMF and Asian Development Bank (ADB) at a time when the country is passing through economic crunch, deteriorating balance of trade, fiscal deficit and a historic wave of inflation. The economic experts are of the view that the loan received from the IMF will achieve sustainability against the greenback, help Pakistan to pay its external debts, recover from its fiscal deficit and keep foreign exchange reserves to the equivalent of 3 months of imports.