Islamabad: International Monetary Fund ,International Monetary Fund) on Thursday ratified an employee-level agreement with the cash crunch Pakistan Upon the completion of two outstanding program reviews and the much-anticipated release of $1.17-billion, which is part of the fund’s $6-billion program in the country.
The deal, subject to approval by the IMF’s executive board, was executed after Pakistan met the global lender’s tough demands, including passing a revised budget on the moneylender’s terms and conditions.
In a statement on its website, the IMF said that its team, led by its head of mission in Pakistan, Nathan Porter, finalized discussions with Islamabad and has also agreed to expand its Extended Fund Facility (EFF), Which is currently worth $6 billion. By the end of June 2023, as well as expanding the loan size of the program to $7bn.
“The IMF team has reached an employee-level agreement with the Pakistani authorities for the conclusion of the Joint Seventh and Eighth reviews of the EFF-supported programme. The agreement is subject to approval by the IMF’s Executive Board,” the IMF statement read.
“Subject to board approval, approximately $1,177 million (SDR 894 million) will become available, taking the total disbursements under the program (m) to approximately $4.2 billion,” the statement said.
It said the decision was taken to support the implementation of the programme, meet Pakistan’s high financing needs in FY 2013 and catalyze additional financing.
In addition, the global lender announced that Islamabad should be prepared to “take any additional measures”.
The IMF statement showed that of the primary budget surplus target of Rs 153 billion, or 0.2% of GDP set in the revised budget, the global lender has actually given a 0.4% target.
To achieve this goal, the government may either require more revenue measures or reduce expenditure, except for expenditure on development.
According to the IMF, a review of Pakistan’s anti-corruption institutions, including the National Accountability Bureau (NAB), has also been made part of the program’s stipulations to enhance their effectiveness in investigating and prosecuting corruption cases.
After the release of the IMF statement, the Prime Minister Shahbaz Sharif and their ministers thanked and congratulated each other for signing the agreement, paving the way for the release of the urgently needed funds. “I would like to thank the Prime Minister, my fellow ministers, secretaries, and in particular the Finance Department, for their help and efforts in achieving this agreement,” the Finance Minister said. miftah ismail Posted on Twitter.
The deal, subject to approval by the IMF’s executive board, was executed after Pakistan met the global lender’s tough demands, including passing a revised budget on the moneylender’s terms and conditions.
In a statement on its website, the IMF said that its team, led by its head of mission in Pakistan, Nathan Porter, finalized discussions with Islamabad and has also agreed to expand its Extended Fund Facility (EFF), Which is currently worth $6 billion. By the end of June 2023, as well as expanding the loan size of the program to $7bn.
“The IMF team has reached an employee-level agreement with the Pakistani authorities for the conclusion of the Joint Seventh and Eighth reviews of the EFF-supported programme. The agreement is subject to approval by the IMF’s Executive Board,” the IMF statement read.
“Subject to board approval, approximately $1,177 million (SDR 894 million) will become available, taking the total disbursements under the program (m) to approximately $4.2 billion,” the statement said.
It said the decision was taken to support the implementation of the programme, meet Pakistan’s high financing needs in FY 2013 and catalyze additional financing.
In addition, the global lender announced that Islamabad should be prepared to “take any additional measures”.
The IMF statement showed that of the primary budget surplus target of Rs 153 billion, or 0.2% of GDP set in the revised budget, the global lender has actually given a 0.4% target.
To achieve this goal, the government may either require more revenue measures or reduce expenditure, except for expenditure on development.
According to the IMF, a review of Pakistan’s anti-corruption institutions, including the National Accountability Bureau (NAB), has also been made part of the program’s stipulations to enhance their effectiveness in investigating and prosecuting corruption cases.
After the release of the IMF statement, the Prime Minister Shahbaz Sharif and their ministers thanked and congratulated each other for signing the agreement, paving the way for the release of the urgently needed funds. “I would like to thank the Prime Minister, my fellow ministers, secretaries, and in particular the Finance Department, for their help and efforts in achieving this agreement,” the Finance Minister said. miftah ismail Posted on Twitter.