IMF pours more funds into Pakistan’s loan program? Was it agreed?
Finally, Pakistan receives another loan from IMF, increasing the total size of the loan to $2 billion. This has been communicated by Finance Minister Miftah Ismail on Sunday 25, April 2022 In Washington.
IMF in July 2019 originally agreed to offer $6 billion to Pakistan as an extended fund facility. So far $3 billion has been disbursed while the next tranche is said to be released after the seventh review completion.
According to the current finance minister of Pakistan, Miftah Ismail, “We demanded an extension to EFF to 4 years, and are getting it”. The officials in IMF were positive and understanding. He also added that upon checking the remaining quota to IMF, it is now $2 billion. As a result, he requested IMF to increase the overall loan by $2 billion.
The continuity of the commitment to IMF is essential for Pakistan.
Back in February, Imran Khan cut the fuel and electricity prices while the oil price was on the rise. IMF showed an objection to this decision and asked Pakistan to stay strict about the economic reforms during the periodic reviews.