ISLAMABAD – Pakistan has finally met the last prior action required for the release of $1.1 billion of bailout funds from the International Monetary Fund under the seventh and eighth reviews.
IMF’s Resident Representative for Pakistan Esther Perez Ruiz confirmed the development, saying with the increase in petroleum development levy, Pakistan has completed all pre-conditions for funds.
The global lender’s official however mentioned that the meeting of the IMF board to release the bailout funds for Pakistan is tentatively planned for late August, once adequate financing assurances are confirmed by the South Asian country.
As of July 31st, the petroleum development levy stood at Rs10 per liter on petrol and Rs5 each on HSD, kerosene, and LDO, reports suggest.
Last month, Islamabad and US-based lender reached a staff-level agreement for the release of $1.17 billion under the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF).
The cast-strapped nation has been striving to revive the loan facility which was halted after the ousted government of Imran Khan announced subsidy on fuel and energy prices.
However, Sharif-led government increased energy and fuel prices in recent months to implement reforms required by IMF to secure the next tranche.
General Bajwa approaches US for early release of IMF loan to avert default
Last week, Nikkei Asian reported that Pakistan’s Army Chief General Qamar Javed Bajwa approached Washington to help secure an early release of the IMF money.
Pakistan trims budget for armed forces development programme to please IMF
