IMF to lend Pak $497 mn as part of bailout package
05 Feb 2016
The International Monetary Fund has agreed to provide a $497 million (nearly Rs3,159.7 crore) tranche for Pakistan as part of a bailout package agreed in 2013.
The decision was made after a crucial meeting between IMF and Pakistani official this week in Dubai.
"After constructive discussions, the mission and the Pakistani authorities have reached staff-level agreement on the completion of the tenth review under the EFF (Extended Fund Facility) arrangement," IMF said in a statement.
The disbursement of the agreed amount will be made after requirement by the IMF board approval but it will be just a formality after the agreement reached with Pakistan.
The IMF will still have to release $1.1 billion of the total $6.7 billion loan agreed three years ago.
The loan helped Pakistan in 2013 to avoid a default when foreign exchange reserves had depleted to a dangerous level.
The privatisation of 68 state-owned companies, which include loss-making enterprises like Pakistan International Airlines, is a crucial part of the IMF deal.