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HomeNationalAgreement would disperse $1.17bn within 3-6 weeks, says IMF

Agreement would disperse $1.17bn within 3-6 weeks, says IMF

The International Monetary Fund (IMF) said that its agreement would translate into $1.17 billion being dispersed to Pakistan pretty much straight away within three to six weeks’ time.

IMF’s Communication Director Gerry Rice has said that the agreement into combined seventh and eighth review would make the total disbursement under the ongoing program to $4.2 billion. However, he added that the disbursement of this loan tranche would be finally approved by the executive board of the fund meeting anywhere within three to six weeks.

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During a press briefing in Washington on Thursday afternoon, Gerry Rice said that this would also unlock more funding for Pakistan which has neared the brink of a balance of payments in recent weeks.

He was hopeful that the program would be helpful in stabilizing the Pakistani economy thus helping expand the social safety net as well as structural reforms along with stabilization of the macroeconomic situation.

Pakistan reached a staff-level agreement with the IMF on Wednesday amid hopes of a reduction in inflation and political stability.

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New York Times’ report has mentioned that the loan program and hence bringing the economy on track would be a litmus test for Pakistan’s new Prime Minister. The report has also said that the reforms induced by IMF could affect the PML-N chance of success in the next general elections because of public backlash because PM Shehbaz Sharif had been reluctant to enact some of the key demands from the IMF.

NY Times has also stated in the report that despite the fact next general elections are scheduled in 2023 but there has been immense pressure on the present government from Imran Khan and his supporters to conduct the elections earlier.

The report in a US newspaper also said that the dangerously falling currency reserves in recent weeks have caused Shehbaz Sharif government to introduce a series of economic measures including raising electricity rates, increasing fuel prices and ending subsidies; however, these measures have ended in the expected backlash.

The NY Times report has also said that the revival; of the IMF loan program would increase international confidence in Pakistan’s economic future.

 

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