IMF to release $540m tranche to Pakistan under EFF programme

Earlier this year, the IMF approved financing arrangements under the EFF for $6.64 billion to support Pakistan.

The International Monetary Fund (IMF) Board on Monday cleared the second review of its Extended Fund Facility (EFF) programme with Pakistan.

#IMF Board just approved 2nd review of EFF program with #Pakistan. US$540 million disbursement to be released.

— IMF Pakistan (@imf_pakistan) March 24, 2014

The $540 million tranche is expected to be released soon.

Earlier this year, the Executive Board of the IMF had approved financing arrangements under the EFF for $6.64 billion to support Pakistan’s economic reform programme.

It was also reported last week that the $2.5 billion Karachi Circular Railway (KCR) project, which is to be funded by Japan, also depended on the IMF’s verdict on Pakistan’s economic performance.

“Japan is considering funding the KCR but it is eagerly waiting for final approval of the second review by the IMF,” Japan Ambassador to Pakistan Hiroshi Inomata had said.