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3rd tranche of EFF: IMF okays $555.6m for Pakistan

3rd tranche of EFF: IMF okays $555.6m for Pakistan

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) approved third tranche of $555.6 million for Pakistan under the Extended Fund Facility after reviewing the country’s economic performance of second quarter (Oct to Dec) of the ongoing financial year (2013-2014).

The completion of the review by the IMF Executive Board enables immediate disbursement of an amount equivalent to SDR 360 million (about $555.6 million).

The current tranche would take the country’s foreign exchange reserves to $10 billion by the end of current month (March), as country would receive this amount $555.6 million in next two to three days. Pakistan’s foreign exchange reserves currently stood at $9.65 billion.

Apart from current instalment, Pakistan had already received two tranches worth of around $1.1 billion under the 36-month extended arrangement under the EFF in the amount of SDR 4.393 billion (about $6.78 billion, or 425 per cent of Pakistan’s quota at the IMF) was approved by the Executive Board on September 4, 2013.

In completing the second review, the Executive Board also approved the authorities’ request for waivers of non-observance of the end-December 2013 performance criteria on net swap/forward position and government borrowing from the State Bank of Pakistan (SBP) based on corrective actions taken by the authorities.

An IMF staff mission, led by Jeffrey Franks, met with the Pakistan authorities in Dubai from February 1 to 9, for discussions on the second review of Pakistan’s IMF-supported programme under the Extended Fund Facility (EFF).