Pakistan signs IMF’s LOI to receive $1.17b loan

ISLAMABAD - Pakistan has signed the Letter of Intent (LOI) which was received from the International Monetary Fund (IMF) last week, clearing   all obstacles for receiving much needed $1.17 billion for Islamabad. The government had received LOI from the IMF on Friday, which was reportedly signed on Monday.  The LOI is designed for the revival of the loan programme under the staff level agreement (SLA) and memorandum of economic and fiscal policies (MEFP) signed last month. Pakistan has sent the LOI and now the IMF would share the final draft of the agreement with the government. According to the ministry of finance, the IMF’s executive board is expected to meet by the end of current month to approve two tranches worth of $1.17 billion and increasing volume of loan programme for Pakistan by one billion dollars. According to reports, the Executive Board of the IMF has been called after friendly countries including Saudi Arabia, the United Arab Emirates, Qatar and China confirmed to the IMF that they had completed arrangements for $4billion in bilateral financing to Pakistan, which was the last hitch to the bailout package after completion of all the prior actions agreed under the SLA.

 

 

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