WASHINGTON: The executive board of the International Monetary Fund (IMF) completed on Wednesday the 12th and final review of an extended fund facility for Pakistan, enabling immediate disbursement of the final tranche of about $102.1 million.
The arrangement allowed the IMF to oversee Pakistan’s three-year economic reforms programme supported by the extended fund facility.
“The board’s decision enables the immediate disbursement of the final tranche,” said a statement issued in Washington.
The executive board had on Sept 4, 2013, approved the 36-month extended arrangement under the extended facility of about $6.15 billion, or 216 per cent of Pakistan’s current quota at the IMF.
The arrangement aimed to support the country’s economic reforms programme to promote inclusive growth. The facility started with an initial disbursement of about $544.5m in 2013, while the remaining amount was evenly disbursed over the duration of the programme, subject to the completion of quarterly reviews.
The quarterly reviews not only approved the disbursements but also praised the efforts Pakistan had made to strengthen its economy.
While announcing the facility, the IMF noted that despite the challenges it faced, Pakistan was a country with abundant potential, given its geographical location and rich human and natural resources.
In later reviews, the IMF acknowledged that Pakistan’s reforms programme helped the economy rebound, forestalled a balance of payments crisis and rebuilt reserves.
The programme also helped reduce the fiscal deficit and the government undertook comprehensive structural reforms to boost investment and growth. Adherence to the programme also catalysed the mobilisation of resources from other donors.
Published in Dawn September 29th, 2016