The International Monetary Fund (IMF) approved the much-awaited $7 billion Extended Fund Facility (EFF) for Pakistan.
The decision was made during an Executive Board meeting chaired by IMF Managing Director Kristalina Georgieva in Washington, with Pakistan’s agenda at the forefront.
According to sources, Pakistan is expected to receive the first tranche of $1.1 billion by Sept 30.
Following the approval of the loan program, the second tranche is also anticipated within the same fiscal year, with the IMF loan being provided at an interest rate of less than 5 percent.
The Extended Fund Facility loan program was agreed upon between Pakistan and the IMF on July 12 last.
With the approval of the loan, Pakistan’s economic and foreign exchange reserves are expected to improve, and the pressure of payments on Pakistan will decrease.
The IMF announced that its board would meet on Sept 25 to discuss the EFF for Pakistan.
