The International Monetary Fund (IMF) executive board on Monday approved the seventh and eighth review of the stalled bailout programme for Pakistan (Extended Fund Facility). Minister for Finance, Miftah Ismail, announced the development on Twitter. “Alhamdulillah, the IMF board has approved the revival of our EFF programme,” said Finance Minister, Miftah Ismail. “We should now be getting the 7th & 8th tranche of $1.17 billion,” he added. The minister thanked Prime Minister Shehbaz Sharif for making tough decisions and saving Pakistan from default. “I congratulate the nation,” he concluded his Tweet.
Bailout programme for Pakistan (EFF)
Pakistan entered the bailout programme or Extended Fund Facility (EFF) with the International Monetary Fund (IMF) during Pakistan Tehreek-e-Insaf (PTI) tenure in 2019 and received the last disbursement in February. The next tranche was set to be disbursed in March. After the review was put on hold by the Washington-based lender after Former Prime Minister Imran Khan reduced the prices of petroleum products through massive subsidies.
However, the coalition government has been able to revive the IMF bailout program after completing all the conditions after coming into power in April. The executive board of the International Monetary Fund (IMF) today reviewed the progress and decided to revive the EFF program and approved the seventh and eighth loan tranches. Pakistan is now likely to receive the seventh tranche ($1.17) of the EFF within six days. The global lender is yet to confirm the development.
The Fund further added that in order to support programme implementation and meet the higher financing needs in FY23, as well as “catalyse additional financing, the IMF Board approved an extension of the EFF until end-June 2023, rephasing and augmentation of access by SDR 720 million that will bring the total access under the EFF to about $6.5 billion.”