Pak receives $554 million as part of IMF bailout loan

Last Updated: Tuesday, December 24, 2013 - 22:43

Karachi: Pakistan has received USD 554 million as the second tranche of a USD 6.7 billion bailout loan from the IMF to help Islamabad implement economic reforms and solve an energy crisis.

"Pakistan received the second tranche from IMF under the ongoing EFF (Extended Fund Facility) on December 23," a spokesman for the Central Bank of Pakistan said Tuesday.

The Washington-based International Monetary Fund (IMF) had approved the EFF in September to help the Pakistan government implement economic reforms and solve its energy crisis.

The bank said the IMF had made an initial payment of USD 540 million. It said the IMF officials have expressed satisfaction with the economic reforms being broadly on track during their visit to Pakistan in November.

The bank said the release of the second tranche of the IMF loan will also help bolster its declining foreign exchange reserves.

A money dealer said he expected the Pakistani rupee would gain strength against the US currency when trading resumed on Thursday after the Christmas holiday on December 25.

"The release of the IMF loan installment will definitely boost confidence in the money market and also in the stock exchange and we should see the Pakistani currency regain ground," Intikhab Ahmed said.


First Published: Tuesday, December 24, 2013 - 22:40

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