IMF announces disbursement of USD 504 million to Pakistan

Islamabad, Sep 30: The International Monetary Fund (IMF) has announced "immediate disbursement" of USD 504.8 million to Pakistan, bringing the total amount released to bolster the country's struggling economy to USD 4.54 billion.

The decision was announced yesterday after the IMF Executive Board completed 8th review of a 36-month extended fund facility for Pakistan on September 28.

The new disbursement brings total disbursements to Pakistan to about USD 4.54 billion, Dawn reported. In completing the review, the board also approved the authorities' request for waivers of non-observance of the end-June 2015 performance criteria on the ceiling on overall budget deficit and the ceiling on net government budget borrowing from the State Bank of Pakistan.

"Economic activity is picking up pace and vulnerabilities are gradually receding," said IMF Deputy Managing Director and Acting Chair Mitsuhiro Furusawa while announcing the approval.

He also asked Pakistani authorities to understand that continued prudent policies and reform efforts were necessary to lock in the gains so far in macroeconomic stability and reinforce the foundation for sustained high growth.

Furusawa emphasised the need for strengthening coordination with the provinces to help safeguard fiscal discipline. Pakistan is facing hardship is meet the deficits and IMF support is considered as a key to undertake structural reforms which have been stalled due to economic vulnerabilities.

PTI