KARACHI: Pakistan has received the first tranche of $991.4 million of the $6 billion from the International Monetary Fund (IMF) under the under Extended Fund Facility (EFF), the chief spokesperson for the State Bank of Pakistan (SBP) confirmed on Wednesday.
On July 3, the IMF executive board approved a $6 billion bailout package for Pakistan and immediately released $1bn to ease a sustained pressure on the country’s foreign exchange reserves. According to the SBP, following the loan, the country’s foreign exchange reserves now stand at above $15.0431 billion.
Beginning this year, Pakistan will receive a total of $6bn in about three years ending 2021-22 from the IMF, while it has to repay about $4.355bn in four years ending 2022-23, showing net receipts of $1.65bn.
Speaking at a news conference on Monday, Ernesto Ramirez-Rigo, the Fund’s mission chief for Pakistan, said the bailout package for Pakistan was “aimed at stability of the nation’s economy and institutions”.
“Pakistan has paid attention to economic reforms,” he said, adding that the “dollar exchange rate in the country was nearer to the reality. It was necessary to bump up tax collection in order to stabilize the economy.”