IMF board agrees to release $500m for Pakistan

Published March 25, 2021
The Int­er­national Monetary Fund (IMF) has agreed to release the next tranche of $500 million for Pakistan. — AFP/File
The Int­er­national Monetary Fund (IMF) has agreed to release the next tranche of $500 million for Pakistan. — AFP/File

WASHINGTON: The Int­er­national Monetary Fund (IMF) has agreed to release the next tranche of $500 million for Pakistan after app­roving four pending reviews of the country’s economic progress, official sources in the US capital said.

The approval revives the $6 billion IMF programme after it remained latent for over a year. The approval followed some tough decisions taken in Islamabad to stabilise the economy. The measures included a steep rise in electricity bills, imposition of Rs140 billion taxes and agreeing to grant unprecedented autonomy for the central bank.

The executive board of the IMF endorsed the staff-level agreement, reached between the government of Pakistan and the Fund’s team last month.

The board’s approval has paved the way for the release of $500m third loan tranche. Out of the $6bn, the IMF has already disbursed $1.45bn in two tranches, bringing the total disbursements to $2bn.

Last April, the IMF had postponed a board meeting for the approval of the second review after Islamabad failed to announce a mini-budget for readjusting the economy.

In February, both sides agreed to club the pending second, third, fourth and fifth reviews of the programme.

The separate completion of these reviews would have led to disbursements of $2.2bn, which the IMF has now reduced to just $500m.

Published in Dawn, March 25th, 2021

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Regional bonhomie
Updated 23 May, 2025

Regional bonhomie

Trilateral cooperation and commercial activity can lead to prosperity for all involved, specifically Afghanistan.
Local government bill
23 May, 2025

Local government bill

THE PML-N leadership is known for concentrating powers in the hands of the top political office and governing ...
New normal?
Updated 23 May, 2025

New normal?

WHY can’t the PTI and its jailed leader decide what they want? Even while leverage is slipping from its hands, the...
Khuzdar atrocity
Updated 22 May, 2025

Khuzdar atrocity

A process of reconciliation is sorely needed in the province, solely militarised response will be insufficient.
Budget and climate
22 May, 2025

Budget and climate

Govt's plan to present a climate-focused budget for the next fiscal year is a welcome paradigm shift in national economic planning.
Justice for Noor
Updated 22 May, 2025

Justice for Noor

Noor's death was the result of not just one person’s malevolence, but a preventable tragedy caused by several individuals failing to do the right thing.