Finance Minister Ishaq Dar says the first installment of 6.64 billion dollars loan approved by the International Monetary Fund (IMF) will be received soon.
Addressing a joint news conference with Punjab Chef Minister Shahbaz Sharif in Islamabad today (Thursday)‚ he said it will help enhance reserves of the country.
The IMF has approved a 6.7-billion-U.S. dollar loan program for Pakistan to support the country’s economic reform to promote inclusive growth.
The three-year loan arrangement under the Extended Fund Facility (EFF) was authorized by the IMF’s executive board, and the approval enabled an initial disbursement of 540 million dollars, the IMF said in a statement.
“The remaining amount will be evenly disbursed over the duration of the program, subject to the completion of quarterly reviews,” it added.
“Despite the challenges it faces, Pakistan is a country with abundant potential, given its geographical location and its rich human and natural resources,” the IMF said.
The program is expected to help the economy rebound, forestall a balance of payments crisis and rebuild reserves, reduce the fiscal deficit, and undertake comprehensive structural reforms to boost investment and growth. Adherence to the program is also expected to catalyze the mobilization of resources from other donors, according to the IMF.
The Finance Minister said the government has earmarked 30 billion rupees subsidy for fertilizers in the current budget.
He said the ECC has allowed import of 300‚000 metric tons of fertilizers to overcome its shortage. Gas diversion to fertilizers factories will help produce 200‚000 metric tons of fertilizers.
Punjab Chief Minister Shahbaz Sharif said agriculture is the backbone of the national economy and farmers are to play a vital role for its revival.