IMF disburses $1.023 bn tranche to Pak; virtual discussions to be held regarding budget

International International News

Posted by AI on 2025-05-14 20:54:28 | Last Updated by AI on 2026-04-28 02:00:48

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Pakistan continues to secure monetary assistance from the International Monetary Fund (IMF), as it has received another tranche of $1.023 billion from the global lender. This is the seventh and final disbursement under the fund's Extended Fund Facility, which amounts to $7 billion in total. This marks a significant milestone in Pakistan's effort to overcome the challenges posed by Covid-19 and the war in Ukraine.

The IMF's decision reflects Pakistan's sustained progress in achieving macroeconomic stability and sustainable growth. In recent years, Pakistan has made significant strides in implementing structural reforms to enhance the resilience of its economy despite unprecedented challenges. These reforms involve tightening monetary policies, securing unprecedented tax revenue, and encouraging foreign investments.

The fund and Pakistan are scheduled to hold virtual discussions regarding the 2022-2023 budget, which will be crucial in determining the next phase of cooperation between the two parties. The IMF-backed government's successful execution of the latest budget, which involved a hike in electricity prices and a rise in tax collection, has boosted its credibility and paved the way for this disbursement.

The funding from the IMF will be used to bolster the country's foreign exchange reserves, which have suffered from a widening current account deficit and declining remittances from workers abroad. Furthermore, the money will be used to shore up government finances and reduce debt levels. With the latest tranche, the total disbursements from the IMF now stand at approximately $2.1 billion under the Extended Fund Facility of $7 billion.

This financial aid from the IMF will provide a much-needed boost to the government's efforts to address the economic challenges faced by the country and will go a long way in securing its commitment to institutional and policy reforms. The next phase of cooperation between the IMF and Pakistan will be crucial in ensuring the country's long-term economic growth and stability.

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