The International Monetary Fund (IMF) has allowed Pakistan to use $ 2.78 billion, equivalent to Rs. 500 billion. Decision has taken to meet the additional needs of its budget that were provide to deal with COVID-19 epidemics.
The IMF typically provides recipient countries with Balance of Payments (BoP) assistance. In special cases, it allows countries to use their resources to meet budgetary needs.
At Pakistan’s request, the IMF agree however, the approval of a $1 billion tranche under the Sixth Review pending Extended Fund Facility (EFF) is expecting.
Commercial banks are keen to provide financing of T-bills at higher rates. The dream of making huge profits by providing budget support of Rs 500 billion will be shattered.
The Ministry of Finance has requested the IMF to allow the use of the $2.78 billion provided to combat COVID-19 epidemics to meet financial requirements.
As per official sources, everything has been finalized and a staff level agreement with the IMF is expected soon.
meanwhile, a staff-level agreement with the IMF needs to be finalize. It is to address the uncertainty, as prolonged confusion continues to depreciate the rupee against the US dollar.
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