World Economy

IMF Approves $506m Loan Tranche for Pakistan

IMF Approves $506m Loan Tranche for PakistanIMF Approves $506m Loan Tranche for Pakistan

The International Monetary Fund (IMF) approved the release of a $506 million loan tranche for Pakistan, the IMF said in a statement.

The Executive Board of the IMF completed on Friday the seventh review of Pakistan’s economic performance, Anadolu Agency reported.

In September 2013, the IMF had approved a three-year program amounting to $6.6 billion. “Progress toward macroeconomic stabilization is encouraging, thanks to strong performance under the program and despite significant legal, political, and security challenges,” IMF Deputy Managing Director Mitsuhiro Furusawa said. “Macroeconomic imbalances are being gradually addressed. Building on these gains, continued efforts are needed to make the economic reforms more sustainable and boost inclusive growth.”

“The financial sector remains stable and progress in bank capitalization is welcome. A number of legislative reforms to strengthen financial stability and inclusion are underway. Efforts to combat financing terrorism, anti-money laundering, and tax offenses should continue,” the statement said.

“Structural reforms are progressing, although more needs to be done,” it said. “While regulatory reform continues, the power sector remains a key bottleneck for growth and a drain on public finances. The authorities’ adoption of a comprehensive medium-term plan to deal with the accumulation of arrears in the electricity sector is welcome in this respect. Continued efforts are needed in the areas of privatization of public sector enterprises, trade policy, and business climate reforms,” it added.