IMF approves $6.7b loan program for Pakistan

Thursday, September 5th, 2013 10:10:19 by

The International Monetary Fund (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.

Established in 1974, the EFF mechanism is typically three years in duration and aims at providing assistance to countries experiencing serious medium-term payments imbalances due to structural impediments in production and trade.

The PML-N gov’t is completely heading in opposite direction of its own policy not to approach international financial institutions and is now seeking different loan programmes.

“Interesting how IMF bailout under PML-N govt is downplayed in the media,whereas when PPP did it,the heavens fell,” PPP leader and former ambassador, Sherry Rehman said in ┬áher Tweet.

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Posted by on Sep 5 2013. Filed under Business, Latest News, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

1 Comment for “IMF approves $6.7b loan program for Pakistan”

  1. Shaista

    Already fuel adjustment charges has been added to electricity bills which are collected from last year date and yet they are putting more burden on consumers. Beside this government is reluctant to give metro bus project , laptop schemes and many such activities name of development, which sorry to say is not development as per the rules of economics and development economics to be more precise. So better try to define development indicators more clearly and work on them as they will lead the country to prosperity. As far as growth is concerned Pakistan at this time need a consistent 7-8 percent of GDP growth for a decade to be in the line to become developed countries. But we have to make our course of action in right direction as we are moving in one direction and try to reach the goals without knowing the route. Making country highly indebted and not utilizing resources within the boundary is a dilemma from which we need to come out. Also there is a need for institutional reforms which is just a name here, if there are no institutional reforms stop dreaming of development as your institutions are not working properly.
    Dear Government taking 6.7 billion dollar from IMF at this point of time is worst ever step you will be taking because common man cannot buy using dollar for that SBP need to print the currency and more you print more you are shooting inflation up and cut down the purchasing power of a common man.

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