Third review cleared: IMF releases $550.9m tranche for Pakistan

The International Monetary Fund (IMF) on Friday announced that Pakistan had cleared the third review as part of its Extended Fund Facility (EFF) programme qualifying for the next tranche of $555.9 million.

The review confirms that Pakistan’s economy is on track with the conditions listed in the IMF loan programme.

IMF Board just approved third review of Pakistan's EFF program, authorizing next disbursement of US$550 million.

— IMF Pakistan (@imf_pakistan) June 27, 2014

The IMF had saved Pakistan from possible default by agreeing last September to lend it $6.8 billion over three years. The cash is being doled out in increments but they could stop if Pakistan fails to institute reforms, including cracking down on tax evasion and privatising loss-making enterprises.

Pakistan's tax authorities in April said they would publicly shame defaulters by publishing taxpayers' details in a directory for the first time. Only around one in 200 citizens files income tax returns, leaving the state begging foreign donors to help fund crumbling schools and hospitals.