The International Monetary Fund’s (IMF) Executive Board has finally approved the long-delayed $7 billion Extended Fund Facility (EFF) for Pakistan.
The initial tranche of $1.1 billion is now expected to be released by the global lender on September 30.
As per recent reports, this loan also carries an interest rate of less than 5 per cent.
IMF is likely to release the second installment of loan within the ongoing fiscal year.
It is worth noting that this bailout, according to Prime Minister Shehbaz Sharif, would be Pakistan’s loan from the IMF.
The Governor of the State Bank of Pakistan (SBP) Jameel Ahmed confirmed the approval from th IMF and saod that the country would get first installment soon as Islamabad has met all demands set by the lender.
The approval of EFF follows confirmation of bilateral loans from China, UAE, and Saudi Arabia, totalling $12 billion.
Pakistan and the IMF had reached an agreement on the 37-month bailout programme in July but it was repeatedly delayed as Islamabad was not included on the international lender’s agenda multiple times.
