- News>
- World
IMF to loan USD 123 million to Pakistan
Washington, June 19: Pakistan has secured another USD 123 million from the International Monetary Fund as part of a three-year USD 1.47 billion soft loan after IMF experts completed their fifth review of the country`s economy.
Washington, June 19: Pakistan has secured another USD 123 million from the International Monetary Fund as part of a three-year USD 1.47 billion soft loan after IMF experts completed their fifth review of the country's economy.
With this, the total disbursements to Pakistan under the Poverty Reduction and Growth Facility (PRGF) arrangement has gone up to USD 738 million.
PRGF is a soft loan facility carrying an annual interest rate of 0.5 per cent.
While approving the disbursement yesterday, the IMF's executive board gave a waiver for Pakistan's non-observance of a structural performance criterion, that of preparing by April 15 a revised financial improvement plan for the nation's main power utility, the water and power development authority.
IMF deputy managing director Eduardo Aninat said most structural reforms planned through April were "broadly on track" except for limited progress on privatisation owing largely to regional security concerns that resulted in a lack of investor interest, and for setbacks in energy sector reforms.
Aninat said Pakistan's macroeconomic policy would have to be supplemented by a broad range of structural reforms to create an environment more conducive to private investment.
"This will require forceful pursuit of reforms aimed at simplifying the tax system and broadening the tax base, including the elimination of a number of tax exemptions to reduce distortions and the potential for corruption," he said.
Bureau Report
With this, the total disbursements to Pakistan under the Poverty Reduction and Growth Facility (PRGF) arrangement has gone up to USD 738 million.
PRGF is a soft loan facility carrying an annual interest rate of 0.5 per cent.
While approving the disbursement yesterday, the IMF's executive board gave a waiver for Pakistan's non-observance of a structural performance criterion, that of preparing by April 15 a revised financial improvement plan for the nation's main power utility, the water and power development authority.
IMF deputy managing director Eduardo Aninat said most structural reforms planned through April were "broadly on track" except for limited progress on privatisation owing largely to regional security concerns that resulted in a lack of investor interest, and for setbacks in energy sector reforms.
Aninat said Pakistan's macroeconomic policy would have to be supplemented by a broad range of structural reforms to create an environment more conducive to private investment.
"This will require forceful pursuit of reforms aimed at simplifying the tax system and broadening the tax base, including the elimination of a number of tax exemptions to reduce distortions and the potential for corruption," he said.
Bureau Report