Karachi: The State Bank of Pakistan (SBP) on Tuesday received the first tranche, worth USD 991.4 million, of the multi-billion loan package pledged by the International Monetary Fund (IMF), a news source reported. The international lender recently committed to USD 6 billion under its Extended Fund Facility (EFF) announced for Pakistan.
The said amount will be released on successive reviews of the country’s economic progress over a period of 39 months. This facility will be primarily used to finance the trade deficit and to pay off some of the existing foreign debts.
Previously, Advisor to the Prime Minister (PM) on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh had expressed the hope that the successful implementation of the staff-level agreement with the IMF would help Pakistan project a positive global image, as well as convince other international financial institutions (including the World Bank) that the country was ready to transform its economy and implement fiscal discipline.
For Pakistan, the IMF expects inflows of USD 38 billion from various bilateral and multilateral donors, as well as from trade partners, during the next three years. This amount is higher than the estimated USD 25.5 billion requirement for the current fiscal year.
