Pakistan likely to receive IMF’s first tranche of $1 billion
ISLAMABAD (92 News) – Pakistan will get first tranche of International Monetary Fund (IMF) approved loan on Monday (today).
According to Ministry of Finance, Pakistan will be given $1 billion out of the $ 6.2 billion approved by the international body.
It was reported that the remaining tranche will be awarded for giving proofs in changing the settled economic policies. The IMF would pay the amount in full the allocation of which has been divided into three parts and three years with Pakistan getting $ 2 billion each year.
On the other hand, two big changes are expected in tax policy as the traders will be given relief for not presenting documents on less than 50 million rupees sales.
The money from IMF would help stabilized Pakistan’s dwindling economy and help Pakistan somewhat alleviate fiscal debt and inflation. Pakistan is slated to receive the fund under IMF’s extended loan program.
The loan, which will be given in three years, has been given to help out the economic plan of the country. The approval was accorded during a meeting of the IMF Executive Board.
In a tweet, Adviser to PM on Finance, Revenue and Economic Affairs Abdul Hafeez Sheikh said that the IMF Board had approved a $6 billion Extended Fund Facility (EFF) for Pakistan to support their economic reform program.
“Our program supports broad based growth by reducing imbalances in the economy. Social spending has been strengthened to completely protect vulnerable segments,” he added.
He said that a structural reform agenda which includes improving public finances and reducing public debt through revenue reforms is key part of the program.
“This support bodes well for the country and is a testament to the government’s resolve for ensuring financial discipline and sound economic management,” he said.
Earlier, the IMF executive board met to discuss and finalize the package.
Sources the IMF would expectedly release the first tranche of $500 million this month. The global lender has also advised Pakistan to review the formula for collection of revenues under the National Finance Commission (NFC) award, including an increase in the share of federal government.
The IMF had also advocated integration of taxes collected by the government.