KARACHI: Pakistan’s government is likely to receive more than $2bn worth of inflows from the International Monetary Fund (IMF) this week under its new three year bailout programme, sources in the ministry of finance said yesterday.
The IMF’s executive board is scheduled to meet on September 4 to consider the proposed financial arrangement. A decision will be made after evaluating the Pakistan government’s policies and actions needed for the obtaining of the financial assistance.
“The Fund will release around $2.2bn amount from a total $6.6bn under its extended fund facility (EFF) within 24 hours of approval to the account of the central bank,” said a source.
Pakistan and the IMF reached $5.3bn ($6.6bn now) agreement in early July this year- subject to the timely completion of prior actions to be taken by the authorities.
The country borrowed nearly $8bn from the IMF in 2008 to lift its balance of payments out of turmoil. Consequently, Pakistan has to retire about 2.2bn special drawing rights or $4.5bn of IMF debt by September 2015.
“The only issue of interest is the size of the EFF the executive board will approve,” said Sakib Sherani, renowned economist and former government advisor.