WEB DESK: Pakistan has received the second installment of its loan program from the International Monetary Fund (IMF), totaling $760 million under the Extended Fund Facility (EFF).
The transfer follows the IMF’s recent review, during which the mission assessed Pakistan’s economic performance and recommended the release of the funds.
The IMF’s Executive Board approved a total of $2.4 billion for Pakistan on May 9, part of a broader $7 billion loan program. Of this, $2.1 billion has been approved so far, with $1 billion allocated to the State Bank of Pakistan to bolster foreign exchange reserves. The funds are expected to positively impact the State Bank’s reserves on May 16.
The IMF highlighted Pakistan’s “excellent performance” in meeting economic targets and emphasized the importance of implementing reforms.
A significant portion of the current tranche, $1.4 billion, will be dedicated to climate change initiatives, reflecting the IMF’s focus on sustainable development.
Looking ahead, Pakistan aims to achieve a budget surplus of 2.1% by June 30 and expects foreign exchange reserves to reach $13.9 billion by the same date.
Additionally, the government plans to enhance income tax collection on agricultural income in the upcoming fiscal year, part of ongoing efforts to strengthen economic stability.
