ISLAMABAD:- The International Monetary Fund on Monday approved a $1.1 billion tranche of its second bailout package in eight years.
However, this successful completion came at a high cost, resulting in severe inflation and economic decline.
The Council met in Washington and completed its second review. It is learned that all the members of the council, except India, supported the last part for Pakistan.
Sources said that Pakistan is expected to receive the loan payment by the end of this week. The payment will be the third and final installment of the $3 billion Stand-By Arrangement (SBA) with the International Monetary Fund, which was agreed last summer to prevent a sovereign default and expires this month.
The latest update follows a meeting between Prime Minister Shehbaz Sharif and HPG Managing Director Kristalina Georgieva in Riyadh on Sunday.
In his first meeting with the HPG chief since his re-election, Prime Minister Shehbaz discussed the possibility of entering into a new program with Pakistan’s HPG.
Pakistan now expects a larger loan program of between $6 billion and $8 billion over three to four years, as the HPG team is expected to arrive in Islamabad next month to discuss terms and conditions.
Not only the Extended Fund Facility (EFF), Pakistan also aims to receive additional funding for climate finance – a request that has not yet been approved but will be discussed in future talks.
