CNews WASHINGTON: The International Monetary Fund (IMF) has said its executive board approved a credit of 7 billion and 600 million dollars for Pakistan, the Fund's first rescue in Asia since the global financial crisis began.The credit will "support the country's economic stabilization program," the IMF said in a brief statement.The Fund and Pakistan had already announced an agreement in principle earlier this month on the key elements of an economic program to be supported by an SDR 5.17 billion (about US$7.6 billion) 23-month Stand-By Arrangement, seeking approval by the IMF Executive Board.The agreement was aimed at staving off a balance of payments crisis that has raised the prospect of the nation defaulting on its foreign debts.With today’s approval Pakistan is likely to receive between $3.5 billion and $4 billion initially, while the rest will be distributed in six equal installments.The official signing ceremony of the loan agreement between Pakistan and the IMF is also likely to take place today, after which the first installment will be released.The money is to be transferred to the State Bank of Pakistan's account in the US Federal Reserve in New York. The disbursement takes 48 to 72 hours, which means that Pakistan will have the money by Thursday.Pakistan is counting on IMF financing to help rebuild its foreign-exchange reserves, which shrank 75 percent in a year to $3.5 billion, and to attract investment that will boost an economy predicted to grow at the slowest pace in seven years.Pakistan expects the IMF loan will help it win additional aid from a group of other lenders and donor nations, including the U.S., U.K., China and Saudi Arabia.
CNews WASHINGTON: The International Monetary Fund (IMF) has said its executive board approved a credit of 7 billion and 600 million dollars for Pakistan, the Fund's first rescue in Asia since the global financial crisis began.The credit will "support the country's economic stabilization program," the IMF said in a brief statement.The Fund and Pakistan had already announced an agreement in principle earlier this month on the key elements of an economic program to be supported by an SDR 5.17 billion (about US$7.6 billion) 23-month Stand-By Arrangement, seeking approval by the IMF Executive Board.The agreement was aimed at staving off a balance of payments crisis that has raised the prospect of the nation defaulting on its foreign debts.With today’s approval Pakistan is likely to receive between $3.5 billion and $4 billion initially, while the rest will be distributed in six equal installments.The official signing ceremony of the loan agreement between Pakistan and the IMF is also likely to take place today, after which the first installment will be released.The money is to be transferred to the State Bank of Pakistan's account in the US Federal Reserve in New York. The disbursement takes 48 to 72 hours, which means that Pakistan will have the money by Thursday.Pakistan is counting on IMF financing to help rebuild its foreign-exchange reserves, which shrank 75 percent in a year to $3.5 billion, and to attract investment that will boost an economy predicted to grow at the slowest pace in seven years.Pakistan expects the IMF loan will help it win additional aid from a group of other lenders and donor nations, including the U.S., U.K., China and Saudi Arabia.
