IMF approves $500 million disbursement to Pakistan

ISLAMABAD (Web Desk) - The International Monetary Fund (IMF) approved a 500 million dollar disbursement to Pakistan for budgetary support after its Executive Board completed delayed reviews of Pakistan’s 6 billion dollar loan program.

IMF Deputy Managing Director Antoinette Sayeh told this in a statement saying the latest payment brought total disbursements under the Extended Fund Facility to 2 billion dollars since the program was first approved in July 2019.

She said Pakistani authorities have continued to make satisfactory progress under the program.

Earlier, Pakistan and the International Monetary Fund have reached an agreement on a package of measures to complete second to fifth reviews of the authorities’ reform program supported by the IMF Extended Fund Facility (EFF).

According to a press release issued by the IMF on Tuesday, the package strikes an appropriate balance between supporting the economy, ensuring debt sustainability, and advancing structural reform. "Pending approval of the Executive Board, the reviews’ completion would release around US$500 million," it added.

"The COVID-19 shock temporarily disrupted Pakistan’s progress under the EFF-supported program. However, the authorities’ policies and allowing higher than expected COVID-related social spending, have been critical in supporting the economy and saving lives and households.

The Pakistani authorities remain committed to ambitious policy actions and structural reforms to strengthen economic resilience, advance sustainable growth, and achieve the EFF’s medium-term objectives."

An International Monetary Fund (IMF) team led by Ernesto Ramirez Rigo, concluded virtual discussions with the Pakistani authorities and reached a staff-level agreement. This agreement is subject to the approval of the IMF’s Executive Board. The reviews’ completion would release around US$500 million.