IMF approves $3.2 billion loan to Pakistan
10 Aug 2009
The International Monetary Fund (IMF) has approved an extra $3.2 billion loan to Pakistan to bolster its ailing economy, deeply hurt by the global financial crisis, political uncertainties and security issues, bringing the total financial support to around $11.3 billion.
The global lender sanctioned a $7.6 billion stand-by arrangement in last November, progress of which was reviewed by the IMF Executive Board which further increased the lending by $3.2 billion, following a request from the Pakistan government to meet the country's increased balance of payments due to hike in oil prices.
The IMF fund is primarily intended to help the government's priority spending to provide assistance to nearly three million people displaced by military operations.
An IMF survey released on Saturday stated, like many other emerging markets, Pakistan has been hit by the global economic and financial crisis.
Head of IMF's mission to Pakistan, Adnan Mazarei said, despite the challenges brought on by the global downturn and an extraordinarily difficult security situation, the government has managed to stabilise the economy.
IMF assistance of about $1.4 billion will be made available for immediate disbursement, on a temporary basis for the 2009-10 budget financing. It is intended to provide bridge financing until Pakistan gets support from the international donors who pledged $5.7 billion in April, to be made available over a period of three years. (See: International donors pledge $5 billion aid for Pakistan)