IMF agrees to release $500m loan tranche for Pakistan

Following stringent measures on Pakistan's end, the International Monetary Fund (IMF) on Wednesday agreed to release the third loan tranche of around $500 million for Pakistan while approving four pending reviews of the country’s economy.

According to details, the decision to revive the $6 billion programme came following government’s decisions to jack up electricity prices, impose additional taxes and to grant significant autonomy to the central bank.

It is worth mentioning that IMF has already given $1.45 billion in the previous two tranches out of the $6 billion agreed between the international creditor and Pakistan.

Last month, as both sides reached the staff level agreement, a joint statement was issued to mark the occasion, wherein the Fund said that “the package strikes an appropriate balance between supporting the economy, ensuring debt sustainability and advancing structural reform”.

Meanwhile, Finance Minister Dr Abdul Hafeez Shaikh stated on Thursday that the IMF had amicably completed all pending reviews of Pakistan, adding that Fund "not only appreciated economic policies but also supported Pakistan during the board meeting". 

Hafeez Shaikh said that "Pakistan will now immediately get a $500 million tranche, which will further expedite economic recovery in the country".