IMF set to approve 2nd tranche


From Our Correspondent
WASHINGTON: The International Monetary Fund (IMF) is likely to approve the second tranche of the loan package to Pakistan in its meeting of executive board Thursday.
The approval is expected after the finalisation of a policy-level agreement between Pakistan and IMF.
IMF officials have termed the economic performance of Pakistan in term of targets as satisfactory. After the approval from the IMF executive board, Islamabad will get the second tranche of loan worth $450 million.
The federal government of Pakistan had received the first tranche from IMF post-approval of the under the extended loan programme of $6 billion.
Earlier in November, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Abdul HafeezShaikh had said that IMF, after holding successful dialogues, showed agreement to release the second tranche amounting to $450 million loan to Pakistan. Addressing a press conference along with his economic team in Islamabad, Abdul HafeezShaikh said that IMF mission expressed confidence and lauded the incumbent government over meeting all performance criteria. He maintained, “We have returned $2.4bn loan taken by the previous government and added that the PTI-led government did not borrow a single penny from the State Bank of Pakistan during the current fiscal year.”
Talking about his team’s achievements, HafeezShaikh said that FBR’s recoveries increased by 16 per cent, stock market rose to 6 per cent since July and cement production climb to record 16 million tons. The advisor said that trade deficit was gradually reducing and the economy was on the positive trajectory.
He said that current account deficit was shrinking and foreign exchange reserves were increasing. Shaikh said that economic indicators of the country were on a positive trajectory with growth rate projected to increase.
The adviser said that dollar reserves were increasing and exchange rate of the rupee was on stabilisation. It emerged earlier that the International Monetary Fund’s (IMF) first assessment of Pakistan’s economic progress ends on a positive note, Pakistan to get the second tranche of approved loan in December.