Pakistan received $554 million in the second tranche. CREATIVE COMMONS
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.
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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!
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
@Jibran: Ridiculous! It doesn't go in their pockets. It helps back the Pakistan rupee which benefits the entire country.
@Hedgefunder: You must be one of the insiders?
@Jibran: You must be having laser vision.Thank your parents for that.
Phew.. thats a relief. It will reduce the Forward contract short position of $2.95bn to $2.45bn.
And for those who only follow dogma, this money was spent way before IMF handed them this money.
Yes ! Lady luck has smiled on you ! Start spending it as fast as you can so you can return for some more of the same ! Just remember that you have to repay with Interest too. In fact Pakistan is lucky to even get this loan, as none of the conditions have actually been met, but been covered up by cosmetic efforts and creative accounting.