On Wednesday, the International Monetary Fund (IMF) approved four pending reviews of Pakistan’s economy and decided to release the next loan tranche of around $500 million reviving the $6 billion program after it remained derailed for over a year.
To revive the program back, Prime Minister Imran Khan has taken some strong decisions in spite of the current political situation. These measures, which were pre-existing conditions including an increase in electricity prices, imposition of Rs140 billion taxes, and agreeing to an unparalleled autonomy for the central bank.
The Executive Board of the IMF endorsed the staff-level agreement, reached between the government of Pakistan and the IMF team last month, a top government functionary told media officials after the board’s approval.
The board’s approval has made easy the release of a $500 million third loan tranche. Out of the $6 billion, the IMF has already disbursed $1.45 billion in two tranches, bringing the total disbursements to $2 billion.