World Economy

$498m IMF Loan for Pakistan

$498m IMF Loan for Pakistan$498m IMF Loan for Pakistan

 The International Monetary Fund has approved the immediate disbursement of about $498.1 million to Pakistan, appreciating the government’s “prudent economic policies” and its commitment to strengthen the fiscal position and lower public debt.

The approval to release the loan installment was given by the IMF Executive Board which met in Washington on Saturday to complete the ninth review of economic performance under a three-year program, QNA reported.

The approval of the latest installment brought the total disbursement to about $4.98 billion of a $6.64 billion loan extended to Pakistan under the Extended Fund Facility in 2013. “Economic growth remains robust and near-term vulnerabilities have receded.

The Pakistani authorities have taken corrective measures to foster the achievement of program objectives,” Deputy Managing Director and Acting Chair Mitsuhiro Furusawa said in a statement issued after the meeting.

“Prudent macroeconomic policies and sustained implementation of the reform agenda are important to reinforce gains in economic stability and generate a strong and sustainable growth,” he said while welcoming the commitment of the government to further strengthening the fiscal position and lowering public debt.

“The focus is appropriately placed on revenue mobilization, including broadening the tax base and improving tax collection and compliance, with a view to creating fiscal space for pro-growth spending and greater social protection,” he said.

The statement noted the efforts underway to strengthen coordination with the provinces and improve public financial management to reduce fiscal risks.