HomeWorldPakistanIMF approves revival of Pakistani EFF to disburse $1.17 billion loan tranche:...

IMF approves revival of Pakistani EFF to disburse $1.17 billion loan tranche: Miftah – Business

Executive Director of the International Monetary Fund (IMF) board approved the revival of Pakistan Extended Financing Facility (EFF), after which the country will receive the 7th and 8th tranches of $1.17 billion, Finance Minister Miftah Ismail said. on Monday.

“Alhamdolillah, the IMF board approved the revival of our EFF program. We should now get the 7th and 8th tranche of $1.17 billion,” he tweeted.

minister walked on congratulate the nation and thank Prime Minister Shahbaz Sharif for “take tough decisionsand “saving Pakistan from default”.

Separately, in Interview with Geo News host Shahzeb Khanzada Ismail said that all executive directors supported Pakistan’s request. for loan approval and renewal except in India.

Meanwhile, Prime Minister Shahbaz praised the minister’s financial team and other stakeholders for them hard work.

“Official reopening of IMF program is the main step forward in our efforts to put the Pakistani economy back on track. This is the result of Great team effort,” the Prime Minister said.

The IMF will immediately allocate about $1.2 billion to Pakistan and can provide up up to 4 billion dollars over remainder of in current fiscal year that has begun on July 1.

However official statement not yet published global creditor.

development comes one day after coalition government blamed PTI of “an attempt to jeopardize the IMF loan program” after Khyber Pakhtunkhwa government allegedly refused to implement terms of Fund agreement in letter.

In a letter, KP Finance Minister Jagra said it could be difficult for the KP administration run provincial surplus is year in view of in flood- Associated losses.

It is appropriate to mention here that the provision of provincial surpluses of this fiscal year this is key previously agreed demand to revive the IMF program.

Road to agreement

Pakistan joins IMF program in 2019 but only half funds have been disbursed to date as Islamabad has struggled to keep the targets on track.

last payment was in February and next tranche was to follow a review in March, but government of pushed out prime minister Imran Khan introduced costly fuel price caps, who threw away the fiscal targets and program off track.

new coalition government It has removed in price caps, with prices for gasoline and diesel fuel are rising up by as much as 66% and 92% in over month.

21 June Pakistani authorities and IMF staff mission reached an understanding on in current fiscal yearfederal budget to revive the stalled credit program after the authorities pledged to receive 436 billion rupees. more taxes and a gradual increase in the tax on oil to 50 rupees per litre.

As a result, IMF staff in The statement acknowledges that it is important progress was made over federal budget. Based on on while Pakistan provided a written commitment from the provinces to provide 750 billion rupees. in cash surplus to the Center to keep the budget deficit within 4.9% of GDP and help create a primary budget surplus of 152 billion rupees.

Moreover, Pakistan is now required increase the electricity tariff by 7.91 rubles per unit, except for direct pass-through of monthly fuel cost adjustments in timely fulfillment of IMF requirements.

June 28 Ismail announced that Pakistan received the Memorandum of Economic and Fiscal Policy (MEFP) from the IMF for combined seventh and eighth reviews.

The revised MEFP was founded on budget measures announced Ismail in its windingup speech on revised budget in National Assembly providing over 1.716 trillion rupees (2.2% of GDP) of fiscal adjustment, mainly due to taxation, including 10% super tax on 13 industries and personal income tax covering monthly income over Rs 50,000 per month.

it on Top of a fixed tax regime for sectors like retailers, merchants, jewelers, builders, restaurants, automobile as well as property dealers and so on on.

This is the biggest fiscal adjustment in one year it would be help turnover of about 1.6 trillion rubles of primary deficit – the difference between income and expenses, excluding interest payments – during current fiscal year with a surplus of Rs 152 billion next year.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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