Summary Fourth installment of the IMF loan has been received by Pakistan. More than 2 billion received so fa
ISLAMABAD: (Dunya News) IMF has released the fourth installment of its loan to Pakistan today, Dunya News reported. The installment is worth USD 55 crore and 59 lacs. It is the fourth in the line of installments which International Monetary Fund (IMF) is granting this loan in, to Pakistan. Pakistan has now received a sum of 2 billion and 200 million dollars. This loan will get Pakistan a total of 6.64 US Dollars under this project.
Foreign Ministry is terming it as a major success for itself. Though the happiness seems to be misplaced in the retrospective yet it seems substantiated when we look at the terms and conditions at which this loan is being forwarded to Pakistan by the IMF. According to the conditions that were put before Pakistan to receive this loan also wanted Pakistan to perform well enough on the economic front. The improving economic indicators have encouraged the IMF to continue to extend its support to Pakistan under its Extended Fund Facility (EFF).
Pakistan is to receive a total of US $ 6.64 billion within the three years, starting from September 4, 2013. The loan has been extended in order to help Pakistan avoid the payments crises. IMF had mentioned in the details of the program that this was mainly to help Pakistan improve its fiscal deficit and gradually perk up its foreign exchange reserves. It was also mentioned that Pakistan needed to improve its taxation system. According to Federal Board of Revenue, serious gains have been made in this regard. The FBR has been able to devise a system according to which incomes of certain businessmen and businesses can be monitored closely.
Pakistan also needed to increase its GDP growth to approximately 5% by 2015-16 in order to continue securing the installments of these loans during the thirty six months of the program. Pakistan’s GDP growth has shown positive indications this year. The GDP growth was calculated at 4.1% during the previous fiscal year. The growth has been highest during the last six years and that has provided the Finance Ministry with a reason to rejoice. It has also provided the Ministry of Finance with a rosy picture that it can show to the IMF in order to secure the future installments of this loan.
Now it will be decided in the month of September, when the IMF will ponder over the economic growth of the country, whether Pakistan deserves to get the next installment of the six billion and seven hundred million US dollars loan or not.
