IMF approves $1bn loan tranche for Pakistan

Islamabad: The International Monetary Fund's executive board on Wednesday revived Pakistan's stalled programme and cleared $1 billion tranches after Islamabad gave complete autonomy to the country's central bank and took around PKR 800 billion measures, reported local media.

"I am pleased to announce that the IMF board has approved sixth loan tranche of its programme for Pakistan," Pakistan's Finance Minister Shaukat Tarin said in a tweet on Wednesday.

The IMF's executive board -- that met in Washington -- also waived off few conditions to pave the way for the release of the fourth loan tranche under the sixth review of the USD 6 billion Extended Fund Facility. The government has missed the primary budget deficit reduction target. The programme was suspended since June last year, reported The Express Tribune.

After dragging feet for eight months, the government of Prime Minister Imran Khan signed off all the conditions that it tried to resist first in June and then in October last year, said the Pakistani publication.

The Pakistan government agreed to take Rs800 billion measures through a combination of cut in expenditures and imposition of about Rs500 billion in taxes, including Rs20 per litre fuel tax, to revive the stalled USD 6 billion IMF programme, according to The Express Tribune.