Pakistan receives $991m as first tranche of IMF programme

Published July 10, 2019
On July 3, the International Monetary Fund (IMF) executive board had approved a three year $6 billion loan for Pakistan. — Reuters/File
On July 3, the International Monetary Fund (IMF) executive board had approved a three year $6 billion loan for Pakistan. — Reuters/File

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.

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