Pakistan to get $1.4bn next week to fight corona: IMF

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ISLAMABAD: Pakistan is going to get $1.4 billion from the International Monetary Fund (IMF) next week to boost its foreign exchange reserves and get some budgetary support in the wake of the economic slowdown due to the coronavirus pandemic.
The government requested the IMF last month for a low-cost, fast-disbursing loan under the fund’s Rapid Financing Instrument (RFI) to deal with the adverse economic impact of COVID-19.
“We have been working with the Pakistani authorities since the request was placed … This $1.4 billion disbursement is scheduled to happen next week,” said Teresa Daban Sanchez, the IMF Resident Representative in Pakistan told a media outlet.
The RFI is used to provide financial assistance to IMF member countries facing an urgent balance of payments need without requiring them to put a full-fledged program in place.
Sanchez said the IMF is working with the Ministry of Finance to make sure that Pakistan has “enough resources to navigate through this difficult time.”
The $1.4 billion loan to Pakistan is additional to the country’s $6 billion bailout package that it signed with the IMF in July last year to stave off a balance of payments crisis.
“Pakistani authorities remain committed to the policies and reforms outlined under the EFF-supported program,” the IMF resident representative said. – TLTP