HomeBusinessPakistan To Receive $1.4 Billion From IMF Next Week
Pakistan To Receive $1.4 Billion From IMF Next Week
May 28, 2020
Pakistan will receive $ 1.4 billion from the International Monetary Fund (IMF) next week to increase its foreign exchange reserves and obtain some budgetary support after the coronavirus pandemic has led to a slowdown in the economy.
The government requested the International Monetary Fund last month to provide low-cost, fast-paying loans based on the Fund ’s Rapid Financing Tool (RFI) in response to the adverse economic impact of COVID-19. Teresa Daban Sanchez, IMF representative in Pakistan, told Arab News: “We have been cooperating with the Pakistani authorities since we made the request … This $ 1.4 billion expenditure is planned for next week. “
RFI is used to provide financial assistance to IMF member countries facing urgent balance of payments needs without the need for them to develop a comprehensive plan. According to a report in Arab News, it can support a wide range of emergency needs, including those caused by commodity price shocks, natural disasters, conflicts and post-conflict situations.
Sanchez said the International Monetary Fund is working with the Ministry of Finance to ensure that Pakistan “has sufficient resources to survive this difficult period.”
The $ 1.4 billion loan to Pakistan is in addition to the $ 6 billion bailout plan that the country signed with the International Monetary Fund last July to avoid a balance of payments crisis. The IMF resident representative said: “The Pakistani authorities remain committed to the policies and reforms outlined under the plan supported by the Federal Emergency Response Fund.”
Pakistan has announced a 1.2 trillion rupee fiscal stimulus plan to offset the adverse effects of the COVID-19 pandemic on the country ’s fragile economy. It also contacted multilateral donors and asked them to provide more funds to fight the coronavirus pandemic and its economic impact.
“Arab News” added that the World Bank has approved 1 billion US dollars, and the Asian Development Bank has approved the provision of 1.5 billion US dollars to Pakistan to maintain the sustainable development of its economy.