Islamabad: The International Monetary Fund (IMF) is expected to roll out the 7th and 8th tranches amounting to USD 1.7 billion before August 20, news sources reported on August 1. The tranches are the final instalment of the IMF’s USD 7 billion loan arrangement with Pakistan.
Reportedly, after reaching a staff level agreement in July, the agreed funds’ release was stalled as IMF staff began their recess, ending on August 12. This means that a review report provided by Pakistan before August 6 will now be able to reach the IMF’s Executive Board meeting for review. Following the resumption of talks after this development, it was reported that the process would start again and is expected to be completed by August 20. The news has arrived at a time when the country’s foreign exchange reserves are stressed due to a swelling current account deficit (CAD) problem.
It is important to note that the IMF and Pakistan signed a loan agreement in 2019 for USD 6 billion, which was later extended to USD 7 billion in July, citing the need to support fiscal policies. Moreover, the release of IMF loan tranches will encourage other international financial institutions to engage with the country.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
