Out of the blue: IMF condemns Peshawar school attack

IMF also approved release of two tranches worth $1.1billion to Pakistan

ISLAMABAD: In an unusual move on Wednesday, directors of International Monetary Fund unanimously expressed their condolences to the people of Pakistan over the loss of lives in the Peshawar terrorist attack.

“The IMF directors (were) united in expressing deepest condolences to people of Pakistan for the loss of innocent life in the horrific attack yesterday,” Jeffery Franks, the IMF’s Washington-based Mission Chief to Islamabad said on Wednesday.

Given the apolitical nature of the institution, the IMF usually does not comment on such developments.

Simultaneously, the IMF also approved a release of $1.1billion to Pakistan, helping the country to cross psychological barrier of having total foreign currency reserves of over $15 billion for the first time in 30 months.

The decision to approve two combined loan tranches worth $1.1 billion was taken by the Executive Board of the IMF in a meeting held in Washington.

The approval was already anticipated, as the government had met all the prior conditions till the November 30 deadline.

With the release of combined tranche of $1.1 billion, the country’s total foreign currency reserves would cross $15 billion. In June 2012, Pakistan had total foreign currency reserves of $15.2 billion, which then started gradually depleting due to sue of reserves to defend depreciating rupee and drying up foreign inflows.

Currently, the country’s total foreign currency reserves stand at $13.922 billion including $9.203 billion held by the central bank. With the fresh injection of $1.1 billion, the SBP’s reserves would increase to $10.1 billion –a level also last time witnessed in June 2012.

Pakistan and the IMF had concluded staff level talks last months and agreed to take the case for the release of next tranche to the Board only after Islamabad met the outstanding conditions. The IMF staff had set November 30 deadline to meet these condition.

Early this month, Finance Minister Ishaq Dar had stated that Pakistan have met all five actions pertained to increasing Net International Reserves held by State Bank of Pakistan, reducing net domestic assets and government borrowings.

Dar said under the conditions the heads of National Electric Power Regulatory Authority (NEPRA) and Director General of Debt Management Office were also appointed.