Pakistan receives $991m as first tranche of IMF programme

Published July 10, 2019
On July 3, the International Monetary Fund (IMF) executive board had approved a three year $6 billion loan for Pakistan. — Reuters/File
On July 3, the International Monetary Fund (IMF) executive board had approved a three year $6 billion loan for Pakistan. — Reuters/File

Pakistan has received the first tranche of $991.4 million of the $6 billion bailout package International Monetary Fund (IMF) bailout, the chief spokesperson for the State Bank of Pakistan said on Wednesday.

This is equivalent to a special drawing right (SDR) of $716 million. An SDR is an IMF unit for a financial transaction, which includes a mixed basket of currencies.

On July 3, the IMF executive board approved a $6 billion bailout package for Pakistan and immediately released $1bn to ease a sustained pressure on the country’s foreign exchange reserves.

The package, which supports the government’s efforts to revive the country’s ailing economy, includes a phased release of the additional aid over a 39-month period. The IMF will also conduct quarterly review of Pakistan’s performance over this period.

Earlier in the week, a senior government official said that beginning this year, Pakistan will receive a total of $6bn in about three years ending 2021-22 from the IMF, while it has to repay about $4.355bn in four years ending 2022-23, showing net receipts of $1.65bn.

He shared that the government was expected to receive the first disbursement of about $1bn this week under the $6bn Extended Fund Facility (EFF) that would boost the foreign exchange reserves in the short term, but its repayment obligations under the previous $6.4bn EFF have already begun.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Agriculture tax
Updated 16 Nov, 2024

Agriculture tax

Amendments made in Punjab's agri income tax law are crucial to make the system equitable.
Genocidal violence
16 Nov, 2024

Genocidal violence

A RECENTLY released UN report confirms what many around the world already know: that Israel has been using genocidal...
Breathless Punjab
16 Nov, 2024

Breathless Punjab

PUNJAB’s smog crisis has effectively spiralled out of control, with air quality readings shattering all past...
Last call
Updated 15 Nov, 2024

Last call

PTI should hardly be turning its "final" protest into a "do or die" occasion.
Mini budget talk
15 Nov, 2024

Mini budget talk

NO matter how much Pakistan’s finance managers try to downplay the prospect of a ‘mini budget’ to pull off a...
Diabetes challenge
15 Nov, 2024

Diabetes challenge

AMONGST the many public health challenges confronting Pakistan, diabetes arguably does not get the attention it...