After $1.4b approval, IMF puts on hold $6b EFF programme

ISLAMABAD: In the wake of coronavirus pandemic and disbursement of $1.386 billion under the Rapid Financing Instrument (RFI) to help Pakistan address the economic impact of COVID-19 shock, Pakistan and the International Monetary Fund (IMF) have reportedly agreed to put on hold the existing $6bn Extended Fund Facility (EFF) programme, a local newspaper reported. 

It has been learnt that further talks on $6bn Extended Fund Facility (EFF) programme would be held once the COVID-19 pandemic is over. 

According to an IMF press statement issued on Friday, “A purchase under the Rapid Financing Instrument (RFI) equivalent to SDR 1,015.5 million ($ 1.386 billion, 50pc of quota) has been approved for Pakistan to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.”

The IMF projected the near-term economic impact of COVID-19 to be significant, as it would give rise to large fiscal and external financing needs.

The IMF support would help provide a backstop against the decline in international reserves and provide financing to the budget for targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact.

 

Must Read

Walt Disney forms business unit to coordinate use of AI, augmented...

Walt Disney is forming a new group to coordinate the company's use of emerging technologies such as artificial intelligence and mixed reality, as the media...