Cash-strapped Pakistan is getting a breather as IMF has agreed to release $450 million. The conditions for the cash allotment is not available now, the Dawn reported
Dawn says the International Monetary Fund (IMF) had reached a staff-level agreement with Pakistan authorities “on policies and reforms needed to complete the second review” of the $6bn Extended Fund Facility (EFF).
The announcement was made by Ernesto Ramirez Rigo, Mission Chief for Pakistan, through a brief statement after a series of engagements with Adviser to the Prime Minister on Finance and Revenue Dr Hafeez Shaikh, Governor of the State Bank of Pakistan Dr Reza Baqir and Finance Secretary Naveed Kamran Baloch through video conference over the last two weeks.
“IMF staff and the Pakistani authorities have reached a staff-level agreement on policies and reforms needed to complete the second review of the authorities’ reform programme supported under the EFF,” said the statement.
The agreement is subject to approval by the IMF management and consideration by its executive board, which is expected in early April. Completion of the review will enable disbursement of SDR 328 million (around $450m), the statement said.
The leading English daily said the Pakistan authorities are tight-lipped over the “policies and reforms needed to complete the second review” but hinted that the two sides had agreed over the fact that some breathing space was required to absorb earlier shocks before further adjustment as higher than estimated inflation had put unexpected pressure on majority of the people.