The International Monetary Fund (IMF) in Washington tomorrow will hold its board meeting for considering an approval of the disbursement of second tranche of about $453 million to Pakistan under the $6 billion Extended Fund Facility (EFF) finalized in May this year.
According to the IMF’s website, the board will review Pakistan’s economic growth.
From Oct. 28 to Nov. 8, Pakistan and the staff mission of the IMF had held policy level talks for disbursement of the second tranche, and the mission had given a positive review about Pakistan’s economic performance.
The IMF had held meetings with Federal Bureau of Revenue (FBR) Chairman Shabbar Zaidi and Advisor to the Prime Minister on Finance Abdul Hafeez Sheikh.
Under the fund program, the IMF mission had reviewed Pakistan’s performance against six performance criteria related to Net International Reserves (NIR), Net Domestic Assets (NDA), net foreign currency swap position, primary budget deficit target, net government borrowing from the central bank and stock of sovereign guarantees issued by the government.
In addition, there were two continuous performance criteria including zero new credit to the government by the SBP and on accumulation of external public payment arrears.
On top of that, the authorities’ performance was also reviewed on five indicative targets including disbursements under BISP, government spending on health and education, tax collections, payment of tax refunds and a freeze on power sector’s circular debt.
The IMF had disbursed in July this year about $991 million on completion of all prior actions committed by Pakistan before signing the fund program.
According to the signed agreement in July this year, Pakistan will get $2 billion annually, under the EFF, for the period of three years. The amount is supposed to help Pakistan stabilize its crippling state of economy and recover from fiscal debt and inflation.
On Oct. 21, the IMF and the World Bank Group had expressed support for Pakistan’s economy, while the global funds had also appreciated the economic reforms of the country.
The assurances were given by the managing directors of the IMF and the Work Bank during separate meetings with Sheikh in Washington, Radio Pakistan had reported.
During a meeting, Shaikh and his delegation had held an extensive session with the IMF Managing Director Ms. Krsitalina Georgieva and other senior fund officials.