KARACHI :. August 31,2022: Pakistan on Wednesday announced officially that it has received a tranche of $ 1.16 billion from the International Monetary Fund (IMF) under Extended Funding Facility (EFF) programme.
The State Bank of Pakistan (SBP) confirmed on Wednesday evening that it has recieved $ 1.16 billion tranche under EFF programme. It added that IMF released the fund to Pakistan after 7th and 8th review.
Following staff level talks with Pakistan, IMF board of directors (BoDs) had approved resumption of EFF programme for Pakistan in its meeting held on August 31,2022 in Washington.
The SBP announcement to this effect said inflow of funds from IMF will improve Pakistan’s forex reserves and help the government weather economic crisis .
Pakistan badly needed IMF loan to build up its reserves and stop devaluation of the rupee.
Pakistan’s forex reserves had declined to a dangerous level , pushing its currency to a free fall vis -a -vis US currency.
The free fall of the rupee not only created a panic like situation in the country, but also give birth to the highest ever inflation in the country . It subsequently stocked price- hike to add more problems for low income group of the people of Pakistan.
After exausting all other channels , the new government moved to the IMF for revival of its EFF programme for Pakistan in April 2022.
IMF had suspended EFF programme early this year for Pakistan when then government of Pakistan Tehreek e Insaf (PTI) trashed the deal with the donor agency in February 2022 on political grounds.
The PTI government itself signed an agreement with IMF in September 2021 wherein it committed to raise the petroleum products and electricity rates on monthly basis . However , after filing of the no confidence motion by then opposition alliance against then prime minister , Imran Khan, PTI government walked out of the soveriegn agreement signed with IMF.
The PTI government was on a destructive mood after smelling the end of its rule through no confidence motion .
Though PTI remained successful in putting Pakistan into an economic mess in reaction to loss of its government in the centre , but practically it did a worse kind of financial terrorism against the country.
Since the end of the rule in mid of April this year, PTI is struggling to damage Pakistan financially . Its last ditch effort to block the government deal with IMF was a part of its same crafted policy.
The government, somehow, managed to clinch the deal with IMF and it resulted in resumption of EFF programme and release of $ 1.16 billion to Pakistan on Wednesday