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Pakistan receives $991m as first tranche of IMF programme
Pakistan has received the first tranche of $991.4 million of the $6 billion bailout package International Monetary Fund (IMF) bailout, the chief spokesperson for the State Bank of Pakistan said on Wednesday.
This is equivalent to a special drawing right (SDR) of $716 million. An SDR is an IMF unit for a financial transaction, which includes a mixed basket of currencies.
On July 3, the IMF executive board approved a $6 billion bailout package for Pakistan and immediately released $1bn to ease a sustained pressure on the country’s foreign exchange reserves.
The package, which supports the government’s efforts to revive the country’s ailing economy, includes a phased release of the additional aid over a 39-month period. The IMF will also conduct quarterly review of Pakistan’s performance over this period.
Earlier in the week, a senior government official said that beginning this year, Pakistan will receive a total of $6bn in about three years ending 2021-22 from the IMF, while it has to repay about $4.355bn in four years ending 2022-23, showing net receipts of $1.65bn.
He shared that the government was expected to receive the first disbursement of about $1bn this week under the $6bn Extended Fund Facility (EFF) that would boost the foreign exchange reserves in the short term, but its repayment obligations under the previous $6.4bn EFF have already begun.
Comments (25) Closed
IMF have so me rights to look into the economic performance of the country. PMLN, PPP, thier ministers, theirs appointees and their family members have looted the country for so many years. Pakistan has lost the trust and reputation of the International financing organisations. The present government will Inshallah restore the trust and economy of the country very soon.
News in Pakistan. For most countries USD 991 is small change.
I think $9M is reduced as commision by ....
How can it be 991 million just for 6 months of this year when 1,650 million is the total available sun for the full 4 year period and rest of 4,350 million is the amount of interest and charges to be returned?
Spend it all for paying Chinese debt and for defense. Again borrow.
IMF throwing coins
The economic policy of the PTI government to take interest based loans from all over the world is like jumping into a quagmire (daldal). People are already suffering from high inflation and taxes and this problem will further exacerbate in the future.
Time to party and spend spend spend
We need to spend more money on weapons and defence
Pakistan govt. hard work is finally paying off. Dollars poring in from all directions.
Congratulations!
Get ready to party...
Gordon D. Walker
Canada
Its party time...lets enjoy. We have lot of money to spend.
@A shah, No, we need to repay the loan of China
Thank you IMF. Now we have money and our PM can plan some more foreign trips with family and friends
@Saif Zulfiqar, Bank checks rating,worthiness and repaying capacity of borrower not the other way around. How you spend money is not their problem. You just need to repay with interest thats it.
Where was IMF monetering team during Nawaz and Zardaree era.? Why did they gave heavy loans to Ishaq Dar even they already knew about corrupt practices of those few guys ?
Make a list of the most productive low-hanging fruit projects that can give a rate of return higher than the cost of capital. They could be in food storage, wastage prevention, water conservation, employment generation, micro-credit, trade skills training, etc. Invest wisely, ensure quick high returns, repay loans and interest promptly, show that you are indeed worthy of trust finally place in you by IMF. Build credibility though fiscal prudence. Be frugal with expenses, lifestyle choices.Save!
Everything downhill from now. Wait and watch.
Is this deduction of $9mln as payout to the facilitator.
Rather than reducing 'debt trap", the PTI government sign agreements to take an unprecedented amount of interest based loans from the IMF, World Bank, and ADB. PM your words before the elections are different from your actions after forming the government.
@Enlightened One, well done
Maybe now PMIK can stay at a good hotel in Washington if a decent range instead of a B&B? A good four star hotel can most certainly be afforded after this latest loan.
Time to celebrate for the khan saheb's achievement...
Earlier 12 billions financial assistance from gulf sheiks and china vanished in thin air. How long this 991 will sustain?