Islamabad: The International Monetary Fund (IMF) has announced its decision of releasing USD 1.4 billion – under its Rapid Financing Instrument (RFI) arrangements – to Pakistan next week in a bid to ease the economic turmoil expected within the country in the wake of the lockdown imposed to contain the coronavirus pandemic, a news source reported.
As per reports, Pakistan officially placed the request for issuance of the loan under RFI earlier in March. IMF Resident Representative in Pakistan Teresa Daban Sanchez said that their team has been effectively working to respond to the request as soon as possible. Reportedly, the amount is in addition to USD 6 billion Pakistan will get in terms of IMF’s bailout package deal signed last year.
Advisor to Prime Minister on Finance Abdul Hafeez Shaikh said that the requested amount is a ‘fast disbursing, low cost loan’. “We would like to secure funds before the losses are evaluated,” he said and added that Pakistan wants IMF to consider the loan request separately.
Earlier in March, the State Bank of Pakistan reduced the
interest rates by 150 basis points to 11%. Furthermore, the government also
announced a relief package to support the daily wagers hard-hit by the COVID-19
pandemic.
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