Payment made to return money Pakistan borrowed under a bailout package, signed in November 2008.PHOTO: FILE
ISLAMABAD: The government on Friday paid $260 million to the International Monetary Fund (IMF) as a part of loan repayment, Express News reported.
The fresh payment was made to return money Pakistan borrowed under a bailout package signed in November 2008.
The last IMF repayment of $391 million was made at the end of May.
Heavy debt repayments to the IMF have been putting a dent in the central bank’s reserves, which have declined by nearly 20% in the current fiscal year, putting pressure on the rupee.
An IMF mission is currently in Islamabad to review the county’s ability to pay back its money in addition to negotiating a fresh bailout programme.
Correction: In an earlier version of this story, the amount was erroneously mentioned in rupees. The error is regretted.
COMMENTS (23)
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@truthbetold: I agree with you, to get more and bigger loans it is a no brainier to return smaller amounts. The funny thing is Pakistan has been repaying loans but it did not make this big a news ever. Regards, M
@Shan:
"I am surprised to see that pakistan have money to repay imf !!"
It is called creative circular money management! In plain English, the idea is to borrow from Peter to pay Paul.
When will the Finance Minister again ring the alarm bells of engineered default like the one he rang after the nuclear counter blasts in 1998 after which bulk of foreign aid was suspended in case the much needed economic ventilator of IMF is not available?
@solomon: @antanug: I hope you guys checked the correction in article. DOn't think others are fool. :)
@No to IMF: sustain one more year and then what? I will put a pic of Nawaz Sharif in my house, let alone voting, if he can solve this mess but when you are repaying to get a new deal, its just a dream.
Why to Borrow from IMF why not to Borrow from Islamic Banks , No Interest . Islamic financial system. What are these Islamic Banks are for ?
Why Islamic countries don't use their Banks ?
And the reserves further recede with corresponding increase in interbank dollar rate :( Dismal, dismal state of economy but the rich still would not pay any taxes.
are u all doing it for fun!!! its clearly mentioned $ and not the rupee..
ET: where is my second comment? and until you release that, I will not response to further comments directed to me, as a protest :-(
@gp65: Please dont comment for the sake of it. No where in the news article it is written Rs.260 million.
Last IMF repayment of $391 million was made at the end of May. And now its Rs 260 million. Are you sure it is Rupees and not Dollars?
@No to IMF: Care to explain this deduction?
@ET It would be pertinent to mention how much debt still remains. Numbers without context don't mean anything to us.
IMF is not a curse, they say cut wasteful spending, make taxation more equitable, remove subsidies for the rich, fix institutions, I can't see a single bad thing in there, except that it will change the status quo which no one wants...
Quite a lot of repayment took place under the ppp govt as well.
We just need to sustain one more year and that IMF curse can be avoided. And if PML-N manages to do that, I will give my vote to them in the next general elections.
I am surprised to see that pakistan have money to repay imf !!
ET correct your news. It is $ 260 million NOT Rs. 260 million. Wish it was Rupees.
Is the payment in USD. or PKR? Another ET gaffe? Salams
ET it's $260 million
get back to your senses and leave imran khan/ pti please
260 million Rs or 260 million dollars?
$ 260million???