Finance Minister Shaukat Tarin confirmed the news on Twitter.
“I am happy to report that the IMF Board of Directors has accepted the sixth tranche of their plan for Pakistan,” Tarin said on Twitter.
From October 4 to November 18, 2021, the IMF mission led by Ernesto Ramirez Rigo held virtual chats as part of the 2021 Article IV consultations and the sixth review of the authorities’ reform programme sponsored by the IMF’s Extended Fund Facility (EFF).
The Pakistani authorities and IMF staff had reached a staff-level agreement on the policies and reforms required to complete the sixth review under the EFF, but the agreement was subject to approval by the Executive Board after the implementation of prior actions, particularly fiscal and institutional reforms.
Following approval, the fund will make available a loan of SDR 750 million (about US$1,059 million) to Pakistan, increasing the total disbursements under the EFF to approximately US$3,027 million.
In April 2020, an additional SDR 1,015.5 million (approximately US$1,386 million) was disbursed to assist Pakistan in addressing the economic impact of the COVID-19 shock.
It is worth noting that the fund approved a $6 billion, three-year loan facility for Pakistan in July 2019 to help revive the country’s ailing economy.