ISLAMABAD (Kashmir English): Pakistan is set to receive a $1.29 billion tranche from the International Monetary Fund (IMF) following the Executive Board’s formal approval.
The disbursement was contingent upon a staff-level agreement that had been secured by Pakistan the previous month on the country’s ongoing loan programmes.
Under the $7 billion Extended Fund Facility (EFF) programme, Pakistan is set to receive more than $1 billion, local media said quoting sources.
This includes the first tranche of over $200 million under the $1.3 billion Rapid Financing Instrument (RFI).
With the release of these funds, the total disbursement from both loan programmes will reach $3.3 billion, the sources said. Pakistan had already received two instalments under the EFF programme.
IMF approved second economic review
The sources said the IMF Executive Board has approved the second economic review.
The global lender has described the implementation of the ongoing loan programmes as “strong” and has assured Pakistan of its continued support for the economic reforms.
The tranche of $1.29 billion will further bolster Pakistan’s foreign exchange reserves.
An Iva Petrova-led IMF team held discussions in Karachi and Islamabad from September 24 to October 8 and in Washington, DC, to finalise the Staff-Level Agreement.
