The International Monetary Fund (IMF) has revived Pakistan’s program and its board approved the $1.17 billion loan, reported 24 News HD TV Channel on Monday.
Finance Minister Miftah Ismail announced the IMF board’s approval of the funds in a post on his Twitter account.
“Alhamdolillah the IMF Board has approved the revival of our EFF program. We should now be getting the 7th & 8th tranches of $1.17 billion. I want to thank Prime Minister @CMShehbaz for taking so many tough decisions and saving Pakistan from default. I congratulate the nation”.
IMF also approved increasing the loan size to around $7 billion and extended it till June 2023.
Pakistan entered the program with the IMF in 2019, however, Islamabad struggled to keep targets on track due to which only half the funds had been disbursed.
Islamabad received that last disbursement in February and the next tranche was to follow after review in March, but the PTI-led government slashed the petroleum prices by giving subsidies to the people which threw fiscal targets and the program off track.
After hectic efforts by the PDM government, Pakistan reached the staff-level agreement with the Fund in July after completing all prior conditions. The executive board Monday reviewed the progress and decided to resume the program and approved the seventh and eighth loan tranches.
Pakistan is now likely to receive a $1.17 billion loan tranche from Fund within six days.
Federal Minister for Planning and Development Ahsan Iqbal also announced the development on his Twitter handle. “Despite the malicious campaign of PTI, the IMF has approved the Pakistan program”.
Reporters: Awais Kiyani, Waqas Azeem