Pakistan to receive $510 million aid tranche from IMF

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DUBAI: The International Monetary Fund (IMF) said on Thursday it had reviewed Pakistan's economic performance and will make available a further $510 million to the country as part of a three-year, $6.7 billion financial assistance programme.

The money will be provided when the review is approved by the IMF's management and executive board, the Fund said in a statement, describing its discussions with Pakistan as “productive” and adding that performance criteria in the programme had been met.

“After productive discussions, the mission and the Pakistani authorities have reached staff- level agreement on the completion of the eleventh review under the EFF arrangement,” said Harald Finger, the Fund's mission chief for Pakistan.

The statement added that growth has remained robust despite a weak cotton harvest and declining exports amid a more challenging global environment.

“Real GDP growth is expected to reach 4.5 percent in FY 2015/16 and 4.7 percent in FY 2016/17, helped by favorable oil prices, rising investment, including related to the China Pakistan Economic Corridor (CPEC), improvements in energy supply, buoyant construction activity, and acceleration of credit growth.”

IMF stated that all end-March 2016 quantitative performance criteria, including the budget deficit target and the floor on the SBP’s net international reserves, have been met.

Pakistan's gross domestic product growth is projected at 4.5 per cent in the 2015/16 fiscal year and 4.7pc in the following year, the IMF said.

The agreement was reached after the IMF mission held discussions with Finance Minister Ishaq Dar, SBP Governor Ashraf Wathra and other senior officials in Dubai from May 2 to May 11.

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