November 22, 2021
1 min read

IMF, Pakistan reach deal over 6bn loan

The recent USD 6 billion funding programme dates back to 2019. The funding went through a halt this year due to prevailing reform issues in Pakistan….reports Asian Lite News

;The United Nations (UN) International Monetary Fund (IMF) on Monday said that it has come to an agreement with Pakistan on terms to help revive a USD 6 billion funding programme for the country.

The international financial institution today said that it had reached a staff-level agreement with Pakistani authorities in the context of policies and reforms required to complete the sixth review under the $6 billion Extended Fund Facility (EFF) which has been “in recess” since April.

“The agreement is subject to approval by the Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms,” IMF’s statement read.

“Completion of the review would make available (Special drawing rights) SDR 750 million (about US$1,059 million), bringing total disbursements under the EFF to about US$3,027 million and helping unlock significant funding from bilateral and multilateral partners. An additional SDR 1,015.5 million (about US$1,386 million) was disbursed in April 2020 to help Pakistan address the economic impact of the COVID-19 shock,” added IMF.

The recent USD 6 billion funding programme dates back to 2019. The funding went through a halt this year due to prevailing reform issues in Pakistan.

The revival of said funding programme is subject to finalisation of the National Socio-economic Registry (NSER) update, adoption of amendments in the National Electric Power Regulatory Authority (Nepra) Act, pending quarterly power tariff adjustments, and payment of the first tranche of outstanding arrears to independent power producers (IPPs) reported Dawn citing IMF sources.

IMF further stressed the necessity to curb inflation, preserve exchange flexibility rate and fortify international reserves, reported Dawn.

Lately, Pakistan has been witnessing currency devaluation, high inflation and a current account deficit while investors have become nervous about the outcome of the talks between the government and the IMF. (ANI)

ALSO READ: Pakistan public mood darkens about PRC despite GHQ efforts

Previous Story

UK invites ASEAN to G-7 meeting

Next Story

Festive Joy for Hackers

Latest from -Top News

Trump Targets BRICS Allies with New Tariff

This move coincides with the ongoing BRICS summit being held in Rio de Janeiro, Brazil…reports Asian Lite News US President Donald Trump has announced that an additional 10 per cent tariff will

BRICS Endorses India’s Stand on Terror

The treaty proposed by India within the UN framework aims to provide a comprehensive legal basis for combating terrorism….reports Asian Lite News The leaders’ joint statement, issued after the 17th BRICS summit

BRICS Slams US Tariff Hikes

The leaders criticised developed nations for using environmental issues to justify trade restrictions on developing countries….reports Asian Lite News Rio de Janeiro, July 7 (IANS) Embroiled in a trade war launched by

US Tariffs Pushed to August Amid Talks

In April, Trump announced a base tariff of 10 per cent on most of America’s trading partners and thereafter additional duties ranging up to 50 per cent….reports Asian Lite News US President

Indonesia Joins BRICS Bloc

This year’s BRICS Summit saw an expanded format, reflecting the grouping’s growing relevance in international affairs….reports Asian Lite News Prime Minister Narendra Modi formally welcomed Indonesian President Prabowo Subianto into the BRICS
Go toTop

Don't Miss

Voters will bury PTI’s politics in 2023 polls: Shehbaz Sharif

Sharif has been critical of the Imran Khan government and

China’s top trouble-shooter in Pakistan to ‘secure’ CPEC

According to Pakistani observers, “whatever demands and concerns Yang conveys