Money transferred: Second tranche of IMF loan received, confirms SBP official

IMF warns that Pakistan must continue its reforms for economy to recover, in particular to improve tax collection.


Afp December 24, 2013
Pakistan received $554 million in the second tranche. CREATIVE COMMONS

KARACHI: Pakistan on Tuesday received $554 million dollars as a second tranche of its $6.7 billion bailout loan from the International Monetary Fund (IMF), an official confirmed on Tuesday.

The Washington-based lender had approved the extended fund facility (EFF) in September to help the country achieve economic reforms, particularly in its troubled energy sector.

The IMF made an initial payment of $540 million, and in November fund officials said during a monitoring visit that Pakistan was "broadly on track" with reforms.

"Pakistan received the second tranche from IMF under the ongoing EFF on December 23," a spokesperson for the State Bank of Pakistan (central bank) said in a statement.

The release of the instalment will also bolster the bank's declining foreign exchange reserves.

Cash-strapped Pakistan, plagued by a bloody homegrown Taliban insurgency, is battling to get its shaky economy back on track and solve a chronic energy crisis that cripples industry.

Announcing the approval of the funds last Thursday, the IMF's deputy managing director and acting chair Nemat Shafik had warned that Pakistan must continue its reforms for the economy to recover, in particular to improve tax collection.

COMMENTS (9)

Muslim Leaguer | 7 years ago | Reply

This is a great news for Pakistan, despite negative propaganda by a few radicalized pseudo-intellectual trolls of PTI. Pakistan doesn't need any enemies in the presence of these naysayers!! The IMF tranche is a signal of trust & confidence in the economy of Pakistan, which is also reflected from highest-ever increase in the Stock Market index (barometer of the economy) and regaining strength of PKR. Long Live Pakistan!

the Skunk | 7 years ago | Reply

Merry Christmas and season's greetings. Rejoice, rejoice, and rejoice. Now the PMLN, Finance Ministry, and SBP will celebrate and carousel for money equal to Rapper Jay Z's wealth. 66 years after independence, what an achievement for a struggling nuclear-armed country to receive external help in its economic sector. Soon the debt will become so heavily laden that we will mortgage our nuclear weapons. Salams

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