Pakistan to receive remaining $3 billion from IMF over the next seven months

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Pakistan after getting $1.05 billion from IMF is scheduled to receive the remaining $3 billion under the International Monetary Fund’s (IMF) $6 billion loan programme over the next seven months. The remaining loan will help stabilise foreign exchange reserves of Pakistan and strengthen the rupee.

IMF has given Pakistan $1.05 billion following the satisfactory completion of the sixth review of the External Fund Facility (EFF) programme, the central bank stated on Friday.

“Following the successful conclusion of the IMF program’s 6th review, #SBP has received the next tranche of $1.053 billion,” the SBP said on Twitter.

After the conclusion of the 2021 Article IV consultation and the sixth review of the extended arrangement under the EFF for Pakistan, the IMF decided late Wednesday to revive the halted $6 billion loan programme.

Read more: Growing financing needs may force Pakistan to seek new IMF loan

Following the completion of the sixth review, the authorities were able to draw SDR 750 million (about $1 billion), bringing the total budget support purchases under the programme to SDR 2,144 million (around $3 billion, or 1065% of the quota).

On July 3, 2019, the board approved the EFF for SDR 4,268 million (about $6 billion at the time of approval, or 210 percent of quota).

The program’s goal is to help Pakistan’s policies rebound from the COVID-19 pandemic, maintain macroeconomic and debt sustainability, and progress structural reforms to provide the groundwork for strong, job-rich, and long-term prosperity that helps all Pakistanis.

It is worth noting that Pakistan entered the COVID-19 pandemic with stronger buffers, thanks to the EFF program’s approval. The next review (seventh) of the $6 billion EFF programme is due in April 2022. In September 2022, the eighth and final review will be completed.

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