IMF approves USD 700 mn loan for Pakistan

Islamabad [Pakistan]: Amid the crippling economic woes in Pakistan, the Executive Board of the International Monetary Fund (IMF) completed its first review of the country’s economic reform programme and allowed the immediate disbursement of USD 700 million, ARY News reported on Thursday. 
The report, quoting a release by the Pakistan Finance Ministry, stated, “The Board’s approval allows for an immediate disbursement of SDR 528 million (around US$ 700 million), bringing the total disbursements under the SBA to US$ 1.9 billion.” 

The IMF’s nod follows the staff-level agreement reached between the IMF and Pakistan on November 15, 2023, emphasising the nation’s commitment to implementing key reforms. 

The IMF executive board’s approval came amid continued efforts of caretaker Finance Minister Shamshad Akhtar and Army Chief General Asim Munir to revive the country’s sputtering economy. 

The current IMF programme of USD 3 billion is scheduled to end in the second week of April 2024, with around USD 8 billion remaining undisbursed. The IMD released its first tranche of USD 1.2 billion in July. 

With the approval of the IMF board, Pakistan will receive a further installment of about 700 million US dollars. Officials in the Finance ministry said Pakistan has achieved all IMF targets and, ‘hopefully’, will be able to get the required results. 

The officials said Pakistan strictly implemented the economic reforms as advised by the world body. 
On November 16, last year, Pakistan and IMF reached a staff-level agreement on the first review under the SBA. 

The agreement supports the authorities’ commitment to advance the planned fiscal consolidation, accelerate cost-reducing reforms in the energy sector, complete the return to a market-determined exchange rate, and pursue state-owned enterprise and governance reforms to attract investment and support job creation, while continuing to strengthen social assistance. 

The total debt burden on Pakistan rose to a whopping 63,399 trillion Pakistani Rupees (PKR) by the end of November last year in the financial year 2023-24, ARY News reported citing an official report. 

According to the report, the country’s total debt increased by over 12.430 trillion PKR during the tenure of the PDM and the caretaker government. 

Pakistan’s overall debt burden surged to PKR 63.390 trillion including PKR 40.956 trillion in domestic loans and PKR 22.434 trillion in international loans. 

The report stated further that the country’s overall debt stood at PKR 50.959 trillion in November 2022. The burden of the loan was recorded at PKR 63.390 trillion in November 2023, ARY News reported.