IMF announces immediate disbursement of $504m to Pakistan
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WASHINGTON: The International Monetary Fund on Tuesday announced “immediate disbursement” of $504.8 million to Pakistan.
On Sept 28, the IMF Executive Board completed 8th review of a 36-month extended fund facility for Pakistan. Tuesday’s disbursement brings total disbursements to Pakistan to about $4.54 billion.
In completing the review, the board also approved the authorities’ request for waivers of non-observance of the end-June 2015 performance criteria on the ceiling on overall budget deficit and the ceiling on net government budget borrowing from the State Bank of Pakistan. The waivers also cover modification to adjust the end-September 2015 performance criterion on net domestic assets of the SBP target.
Take a look: Pakistan and the IMF: The ties that bind
“Economic activity is picking up pace and vulnerabilities are gradually receding,’ said IMF Deputy Managing Director and Acting Chair Mitsuhiro Furusawa while announcing the approval.
But he also urged Pakistani authorities to understand that continued prudent policies and reform efforts were necessary to lock in the gains so far in macroeconomic stability and reinforce the foundation for sustained high growth.
Mr Furusawa also emphasised the need for strengthening coordination with the provinces to help safeguard fiscal discipline.
Published in Dawn, September 30th , 2015
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Comments (22) Closed
Sep 30, 2015 06:30am
to expand business and economy you need loans..same as small business need bank loan to expand our shop etc...it depends how the management use it..if government use it honest way this loan will double pak income than loan..if they dont use wisely then it will make pak bankrupt like greece...so the gov shud use it wisely to increase economy
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Sep 30, 2015 06:47am
Just wondering if that's enough?
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Sep 30, 2015 07:19am
@natey You can justify borrowing money as much as you want, but the fact remains that Loans are nothing but a burden on citizens. A smart leadership will always try to get its domestic industries up and running to increase revenue and bring in more investment dollars rather than loan dollars.
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Sep 30, 2015 07:54am
If foreign exchange reserves are comfortable then why Ishaq Dar is so impatient about Euro Bonds. As far as comparison between Greece & Pakistan is concerned,please do not compare,as Pakistan is rich in minerals,natural resources ,cotton leather,rice wheat ,meat,beef vegetables,fruit,besides all types of industries like textiles,pharmaceutical,chemicals,are there,Greece is famous for shipping industry.And after CPEC Pakistan will be more strong economically.So all is well Natey.
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Sep 30, 2015 08:09am
Thank you IMF and US
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Sep 30, 2015 08:39am
The yokels in Pakistan's Ministry of Finance and the Ministry of Information seem to be taking pride in the "immediate disbursement" bit not realizing that immediate disbursement is only resorted to by the IMF in cases where there is an urgent need to restore confidence in the economy and/or the government, keep external deficits manageable, and replenish international reserves; i.e., claims of a good economy and requirement of immediate disbursement are antonyms, not synonyms. Countries which have recently received "immediate disbursements from IMF are: Gambia, Greece, Ukraine and of course Pakistan! Know with whom you stand!
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Sep 30, 2015 08:48am
@Zak dear thank china.check who is the deputy M.D of IMF. further also see the share of china deposit in total outlay of funds.china never give grants or general loans.they believe in investments,win,win for both.wait for next year huge agreements in mineral resources of Pakistan by china.
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Sep 30, 2015 09:20am
Money will reach pakistan but will it reach to normal people
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Sep 30, 2015 09:33am
More money to go in our corrupt rulers pockets
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Sep 30, 2015 09:43am
With this country's elite buying properties worth 2 Billion dollars in Dubai each year this is the most ridiculous news to hear and proves that this is a failed state. Has this ruling elite from Punjab ever thought of other sources of money by taxing the rich people of the country first, before leaving the next generation to pay for today's luxury of the elite?
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Sep 30, 2015 09:45am
Money flowing in is reported but money flowing out is not reported. It should also be reported so that Citizens know for what purpose, loans are being used.
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Sep 30, 2015 10:10am
Loans require to be paid back!, ..with interest..
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Sep 30, 2015 10:17am
India has emerged on top of the foreign direct investment league table, overtaking China and the United States, according to the FT data service.
A ranking of the top destinations for greenfield investment (measured by estimated capital expenditure) in the first half of 2015 shows India at number one, having attracted roughly $3 billion more than China and $4 billion more than the US, according to the Financial Times newspaper.
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Sep 30, 2015 10:23am
Borrow money and build a few more bridges and underpasses... And more pocket money to cover travel expenses!
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Sep 30, 2015 11:23am
Country never progresses by taking loans
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Sep 30, 2015 11:33am
@friend This is also correct the countries can not progress without taking loans. its just that the use of the loan decide the fate of the country and its people. So elect people who will use it to improve economical condition of the country so in future the Loan amount will be very minimal and finally disappear.
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Sep 30, 2015 11:45am
Our finance minister Ishaq Dar always shows pleasure when an instalment of loan is released by IMF . He considers this act of IMF as confidence on financial polices of PMLn government as it has completed goals . But inspite of injecting money no visible development works have been done and current expenses met . Only these loans have helped to build foreign reserves and interest thereof to be made from public taxes without any gain for public cause.
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Sep 30, 2015 01:11pm
Bravo - the federal government in Islamabad has done it again. They managed to fool the IMF once more.
Or is it the IMF which is fooling us? They must know by know that the federal gov can never pay this money back - ever - as it will be eaten up in high level corruption!!
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Sep 30, 2015 02:21pm
Pakistan should stop receiving this money from IMF. It's a trap. And whatever money comes, goes in politicians pockets and taxpayer has to pay for it. It's for the best of political parties and leaders only. Nobody cares for the command man. Come on wake up.
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Sep 30, 2015 06:51pm
who is benefiting from these huge IMF loans? country or politicians?
US knows very well how these loans are distributed but are deliberately quiet because they want Pakistan to be burdened with debt
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Sep 30, 2015 07:27pm
I have so far not heard India taking any liability from the world bank - it largely depends on its growth and investments in the country, there is less corruption and competent govt
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Sep 30, 2015 08:56pm
Great news, now our leaders can order the helicopters and private jets they have been waiting for so long. Any money left can be used to buy spare parts in advance.
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