ISLAMABAD - Pakistan has received $540 million as first installment from International Monetary Fund under the newly-approved Extended Fund Facility programme worth $6.8 billion to help build the country’s foreign exchange reserves.
“Yes, Pakistan has received the first installment from IMF,” Finance Secretary Dr Waqar Masud confirmed on Saturday, adding, “This tranche would help build the country’s reserves that dipped to five year’s lowest ie, $5b.” Also, Pakistan’s total liquid foreign reserves fell to $9.998b on Sept 5 from $10.39b during the previous week.
On September 4, IMF approved a three-year arrangement under Extended Fund Facility for Pakistan in an amount equivalent to SDR4.393 billion [US$6.68 billion or 425 percent of Pakistan’s quota] to support the country’s economic reforms programme to promote inclusive growth.
The remaining amount will be evenly disbursed over three years, subject to completion of quarterly reviews.
According to sources, IMF would release next tranches upon completion of quarterly reviews. The first quarterly review meeting would be held on December 2 to discuss economic situation of Pakistan with regards to the first quarter (July-September), while second review meeting would take place on March 2 next year to discuss economic situation of second quarter (October-December) of ongoing financial year, 2013-2014.
It may be mentioned here that Pakistan is likely to receive $5.7 billion from different international financial institutions and would repay $3 billion to IMF during ongoing fiscal year 2013-2014. Pakistan would receive $2.2 billion from IMF during ongoing financial year if economic situation of the country impressed the Fund in quarterly reviews.
Similarly, Pakistan would receive $1.5 billion from World Bank, $1 billion from Asian Development Bank, and almost $1 billion from Islamic Development Bank during current fiscal year.