The International Monetary Fund (IMF) has convened a meeting of its executive board on August 29 to approve a bailout package for Pakistan, ...
The International Monetary Fund (IMF) has convened a meeting of its executive board on August 29 to approve a bailout package for Pakistan, including the release of about $1.18 billion before the end of this month. included.
this move was made after the completion of bilateral financing of 4 billion dollars by 4 friendly countries, which will immediately pave the way for the issuance of the next tranche of the IMF board program. will be smooth which is expected to reach Pakistan's account before the end of this month.
Finance Minister Miftah Ismail said that the letter of intent from the IMF to revive the program under the Staff Level Agreement (SLA) and Memorandum of Economic and Financial Policies (MEFP) signed last month. has been received.
"We are carefully reviewing the letter, we will sign it anytime soon and send it back to the IMF and wait for the Executive Board meeting later this month for approval," he said. will
Also Read: Matters between Pakistan and IMF settled
Sources said that the executive board meeting will be held on August 29 to approve the completion of the seventh and eighth reviews of the Extended Fund Facility (EFF) for Pakistan, in addition to a program size of one billion. 7 billion dollars by increasing the dollar and extending its duration till August 2023 will be approved.
On July 31 last month, in view of the increase in the Petroleum Development Levy on oil products, the IMF had confirmed that Pakistan had completed all the necessary steps to revive the program, but it did not agree with its executive board. The approval of the distribution of funds of 1.18 billion dollars was linked to the confirmation of additional inflow of 4 billion dollars from 4 friendly countries of Pakistan.
Since then, the rupee has rallied from around Rs 240 to Rs 216 against the dollar and the stock market has seen strong activity after months of decline.
The exchange rate continued to be under pressure due to dwindling foreign exchange reserves, mainly due to the delay in official confirmation by friendly countries.
Read more: IMF releases 8th tranche to Pakistan
Earlier, the finance minister had claimed the arrival of 8.5 billion to 10 billion dollars from friendly countries for the financing gap of 4 billion dollars, but at the same time, he blamed the political crisis in the country, the fall in the value of the rupee and the stock market. I blamed the recession.
On July 13, the IMF announced a staff-level agreement with Pakistan extending the bailout package by 9 months and increasing the size of the bailout package by $1 billion to $7 billion, including about $1.18 billion. The advance issuance of dollars was also involved.
However, its approval by the IMF's Executive Board was conditional on prior actions being completed by the government over the past two weeks.
In addition, the IMF has also committed the authorities to be prepared to take additional measures necessary to meet the targets of the loan program in view of the growing uncertainty in the global economy and financial markets.
It should be noted that the 39-month Extended Fund Facility (EFF) worth $6 billion provided to countries facing slow growth and serious payment imbalances was supposed to expire in September this year, but the program has repeatedly stalled. The reason is that only 3 installments of about 3 billion dollars have been released so far.
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