IMF to Consider Request of $1.4 Billion Loan on April 16

International Monetary Fund (IMF) Executive Board is scheduled to meet on April 16, to consider Pakistan’s request for a $1.4 billion loan under the Rapid Financing Instrument (RFI).

The IMF Executive Board calendar updated on its website shows that its meeting has been scheduled for April 16, and the agenda includes “Request for Purchase under the Rapid Financing Instrument”.

The second review report under the Extended Fund Facility (EFF) with a request for the release of the third tranche under the $6 billion Extended Fund Facility is not on the Board agenda.

The government has requested the Fund for additional $1.4 billion through RFI –which provides rapid and low-access financial assistance to member countries facing an urgent balance of payments need, without the need to have a full-fledged program in place. The RFI of $1.4 billion, if approved, would not carry any conditions and be disbursed in one go.

Financial assistance provided under the RFI is subject to the same financing terms as the Stand-By Arrangement (interest rates are currently about 1½ percent), and should be repaid within 3¼ to 5 years, as per documents uploaded on the Fund’s website.