Karachi: The International Monetary Fund (IMF) has transferred a loan tranche of $1.23 billion to Pakistan, the State Bank of Pakistan (SBP) confirmed on Tuesday. The funds are expected to reflect in the country’s foreign exchange reserves by the end of the week.
According to reports, the IMF Executive Board had approved the release of this tranche on May 9, despite opposition from India. The disbursement is part of a broader $2.4 billion package approved for Pakistan.
Out of the total $7 billion loan program, $2.1 billion has now been disbursed to Pakistan. The program also includes $1.4 billion earmarked specifically for addressing climate change-related challenges.
In its official statement, the IMF praised Pakistan's performance in meeting economic targets. However, it emphasized the need for strict adherence to agreed reforms, including the enforcement of income tax collection on agricultural income starting from the next fiscal year.
The IMF further stated that Pakistan should achieve a budget surplus of 2.1% by June 30, and projected that the country’s foreign exchange reserves could reach $13.9 billion by the end of the current fiscal year.
