Pakistan has received the first tranche of $991.4 million from International Monetary Fund (IMF), which is equivalent to SDR 716 million, State Bank of Pakistan confirmed.
This is Pakistan’s 13th IMF program. The latest program finally approved a $6 billion bailout package last week amid strict terms and conditions to bring economic reforms in the country including the control over fiscal expenses and generation of revenues through taxes.
The fund will review Pakistan’s performance quarterly over 39 months, phasing release of the additional aid over time.
PTI government termed this IMF as a crucial one for the economy and possibly the last one as the policymakers and economic managers are claiming to work on long-term sustainable reforms to stabilize the financial system and economy of the country.
IMF’s program will further add to the loan burden on the economy in years to come.
Last week, the country received an amount of $500 million from Qatar and retired an amount of $509 million on the account of debt-servicing and loan payment.
The loan portfolio seriously has taken a toll on the economy of the country as the government borrows loans to retire previous loans.