Pakistan receives first tranche of $991.4mln under EFF

ISLAMABAD - The State Bank of Pakistan (SBP) received the first tranche of $991.4 million from the International Monetary Fund (IMF) under Extended Fund Facility (EFF) to help the country reduce economic vulnerabilities and generate sustainable and balanced growth.

“The SBP has received IMF first tranche of $991.4 million which is equivalent to SDR 716 million,” said SBP Chief Spokesman in the wee hours of Wednesday.

The IMF on July 3 had approved a loan of $6 billion for Pakistan, a 39-month extended arrangement, to support the country’s economic reform programme.

After approval of the loan under EFF by the Executive Board of IMF, Pakistan was eligible to immediately receive the first tranche of $1 billion.

The fund will quarterly review the performance of Pakistan over 39 months, while the programme would focus on a decisive fiscal consolidation to reduce public debt and build resilience while expanding social spending.

It will also try to ensure a flexible, market-determined exchange rate to restore competitiveness and rebuild official reserves besides eliminating quasi-fiscal losses in the energy sector, strengthening institutions and enhancing transparency.