Pakistan and the International Monetary Fund (IMF) have successfully concluded 9th review of the Extended Fund Facility paving way for the release of a $505 million tranche to Pakistan after board meeting of the Fund next month.
The announcement was made by Finance Minister Ishaq Dar and IMF officials at the conclusion of their talks in Islamabad on Thursday. Their talks began in Dubai on 26th of last month and were given final touches in Islamabad on Thursday.
The finance minister said that Pakistan would receive $900 million from the World Bank and the Asian Development Bank this month.
He said that Pakistan and the WB have completed negotiations on the Development Policy Credit (DPC) for energy sector and a credit of $500 million is expected after 12 this month. Similarly, Board of Asian Development Bank is also meeting on 21 to approve $400 million assistance for Pakistan.He said the IMF estimates the GDP growth at 4.5 per cent but that the government would try to achieve a target of 5.5 per cent growth during the year.
He said the IMF had reduced the target of inflation from the previous 4.7 to 3.7 per cent in view of the trend witnessed in the first quarter of this financial year.
The minister said that as of October 30, Pakistan had foreign exchange reserves of $20.073 billion. These included $15.25 billion with the State Bank and $4.82 billion with the commercial banks.
Responding to a question Dar said that validity of the ordinance envisaging 0.3 per cent withholding tax for non-filers would be extended by another 120 days through a resolution to be presented in the National Assembly on Friday.
