IMF to Release Final Instalment of US$6.6 Bn Loan to Pakistan

The International Monetary Fund (IMF) cleared payment to Pakistan of a final $102 million tranche in a $6.4 billion three-year programme. 
The decision to release the final tranche worth $102 million of the three-year programme came after a review of the country’s economic performance that found it was meeting most reform indicators but still needed to broaden the tax net, according to IMF press release. 
An International Monetary Fund (IMF) staff mission, led by Harald Finger, conduct discussions in Dubai on the twelfth and final review of Pakistan’s economic program supported by a three-year IMF Extended Fund Facility (EFF) arrangement (See Press Release No. 13/322). The staff team met with Pakistan Finance Minister Ishaq Dar, State Bank of Pakistan (SBP) Governor Ashraf Wathra, and other senior officials. 
At the conclusion of the mission, Harald Finger said in a statement, the agreement is subject to approval by the IMF Management and the Executive Board. Upon completion of this review, SDR 73 million (about US$102 million) will be made available to Pakistan. 
The release of the final tranche is subject to approval by the IMF’s executive board though that is considered a formality. 
"Growth is expected to reach 5 percent in FY 2016/17, supported by buoyant construction activity, strengthened private sector credit growth, and an investment upturn related to the China Pakistan Economic Corridor (CPEC). Nevertheless, a challenging global environment and declining exports are weighing on growth prospects. Average inflation is expected at around 5.2 percent in FY 2016/17, remaining well-anchored by continued prudent monetary policy. Gross international reserves reached US$18.1 billion at end-June 2016, covering over four months of prospective imports", Harald Finger added.