Islamabad: The federal government is likely to receive USD 1.8 billion from the International Monetary Fund (IMF) under the seventh and eighth reviews of the Extended Fund Facility (EFF), news sources reported on August 13. The IMF will formally confirm the expected funds’ release during a scheduled meeting on August 29.
According to reports, the IMF would transfer cash during working hours until August 31, bolstering the country’s foreign exchange reserves (FOREX). It was also disclosed that the IMF would assess the country’s recent adjustments in fiscal policies and tax break restructuring as per the Staff Level Agreement (SLA) in July. In this respect, Finance Minister Miftah Ismail confirmed that the IMF has sent a Letter of Intent (LOI) for the release of USD 1.8 billion under the EFF, which the ministry will evaluate, sign, and return for the much-needed foreign exchange reserves to be released on schedule.
It is worth noting that the IMF required Pakistan to negotiate an extra USD 4 billion credit line from friendly countries to get the EFF tranches. Pakistan has agreed with four countries to provide funding in this regard. The IMF has also increased the borrowing ceiling from USD 6 billion to USD 7 billion, extending the programme until 2023.
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.
