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.

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“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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