Pakistan’s reform programme on track, IMF approves $452m second episode

The approval came after the Executive Board of IMF completed the first review of Pakistan’s economic performance under the EFF

Washington: The International Monetary Fund (IMF) approved Pakistan’s second tranche of $452 million under the $6 billion Extended Fund Facility , and said Pakistan’s programme was on track and had started to bear fruit, but warned that risks remain.

The approval came after the Executive Board of IMF completed the first review of Pakistan’s economic performance under the EFF, said a press release issued by the lender.

The completion of the review will allow the authorities to draw about US$ 452.4 million, bringing total disbursements to about US$ 1,440 million, said the fund.

The IMF Executive Board on July 3 had approved a three-year bailout package worth $6 billion to Pakistan. Soon after the agreement was signed, Pakistan had received the first tranche of loan of $991.4 million from the fund.

Following the Executive Board’s decision, First Deputy Managing Director and Acting Chair David Lipton, in a statement, said that the country’s EFF programme was on track and had started to bear fruit, but warned that risks remain.

Lipton also called for strong ownership and steadfast reform implementation which he termed were “critical to entrench macroeconomic stability and support robust and balanced growth”.