ZCZC
BCN-23
PAKISTAN-IMF-LOAN
Pakistan gets first tranche from IMF under 6 bln USD loan program
ISLAMABAD, July 11, 2019 (BSS/Xinhua) – Pakistan has received the first
tranche of 991.4 million U.S. dollars from the International Monetary Fund
(IMF) under its 6 billion U.S. dollars loan program for Pakistan, a
spokesperson for the State Bank of Pakistan (SBP) confirmed on Wednesday.
The spokesperson told media that the central bank received the loan last
week, adding that the arrival of money would help in building the depleting
foreign exchange reserves of Pakistan and support balance of payment.
Pakistan will receive a total of 6 billion U.S. dollars loan package over a
period of three years from the IMF, local media reported.
Earlier, Adviser to the Pakistani prime minister on Finance, Revenue and
Economic Affairs Abdul Hafeez Shaikh said the IMF board approved the bailout
package for Pakistan to support the country’s economic reform program.
“The loan will contribute to reducing imbalances in the economy while
protecting the most vulnerable segments of the society,” said the adviser.
The IMF has reportedly imposed a condition, among others, to bring the
country’s primary budget deficit to 0.6 percent of GDP from the current 1.9
percent.
Local economic experts believed that the IMF condition would require a
massive escalation in revenue collection and a significant decline in
expenditure.
A team from the IMF will visit Pakistan every three months to review the
economic indicators for the release of the remaining installments, the
reports said.
BSS/XINHUA/HR/1442