Miftah Ismail confirms relaunch of loan agreement with IMF
ISLAMABAD – Finance Minister Miftah Ismail says Pakistan and the International Monetary Fund (IMF) have reached an agreement to revive the stalled lending program that will help the South Asian country meet the challenges economic.
Taking to Twitter on Thursday, the finance minister confirmed the development and said Pakistan would soon receive the combined seventh and eighth tranches worth $1.17 billion from the global lender.
“I would like to thank the Prime Minister, my fellow ministers, the secretaries and especially the finance directorate for their help and efforts in obtaining this agreement,” he wrote.
Ismail, who has been criticized for rising oil prices and inflation caused by IMF conditions, also thanked the public for their support, adding that the government will be able to relieve the public after the agreement with the IMF and the drop in oil prices on the international market. market.
Pakistan and the IMF have reached an agreement. We will soon receive $1.17 billion as the 7th and 8th tranches combined. I would like to thank the Prime Minister, my fellow ministers, the secretaries and especially the finance department for their help and their efforts in obtaining this agreement. https://t.co/376sCHLc1Y
— Miftah Ismail (@MiftahIsmail) July 14, 2022
Earlier in the day, the IMF announced that it had reached a service-level agreement with Pakistan to relaunch the $6 billion loan program under the Extended Financing Facility.
“Furthermore, to support program implementation and meet higher financing needs in FY23, as well as catalyze additional financing, the IMF Executive Board will consider an extension of the EFF. through end-June 2023 and an increase in access of SDR 720 million which will bring total access under the EFF to around US$7 billion,” reads the official IMF statement.
The IMF also released policy priorities, including steady implementation of the 2022-23 budget, catching up on power sector reforms, proactive monetary policy to guide inflation to more subdued levels, reducing poverty, strengthening social security and governance.
The IMF team led by Nathan Porter said in its remarks: “Pakistan is in a difficult economic situation. A difficult external environment combined with pro-cyclical domestic policies pushed domestic demand to unsustainable levels. The resulting economic overheating led to large fiscal and external deficits in FY22, contributed to rising inflation, and eroded reserve reserves.