WASHINGTON: On Monday, Pakistan received the much-needed approval from the International Monetary Fund (IMF) to immediately disburse $1.1 billion. IMF completed the 7th and 8th reviews of the loan facility, bringing total purchases for the budget to around $3.9 billion.
According to the Extended Fund Facility (EFF), IMF agreed to provide Pakistan with a $6 billion loan in a span of 39 months.
Prime Minister Shehbaz Sharif termed the approval as a major step to put the economy of Pakistan on the right track. He praised the efforts of Finance Minister Miftah Ismail, his team and other stakeholders.
The formal resumption of an IMF program is a major step forward in our efforts to put Pakistan's economy back on track. It is outcome of an excellent team effort. I commend Finance Minister Miftah Ismail & his team and other stakeholders for their hard work.
— Shehbaz Sharif (@CMShehbaz) August 29, 2022
The approval of the loan tranche from the IMF had a positive impact on the local currency as the rupee showed progress against the US dollar. By 9:45 AM, the rupee had gained Rs2.92 in value. The dollar traded at Rs219 after losing 1.31 per cent in the interbank market.