International Monetary Fund IMF is going to give Pakistan a loan of $1.4 billion to boost the economic slowdown that occurred due to coronavirus pandemic.
Last month the government asked the IMF for a low-cost, fast-disbursing loan under the fund’s Rapid Financing Instrument (RFI) to deal with COVID-19’s aggressive economic effects.
The IMF Resident Representative Teresa Daban Sanchez said, “We have been working with the Pakistani authorities since the request was placed … This $1.4 billion disbursement is scheduled to happen next week.”
She said that the IMF has been working with the Ministry of Finance to ensure that Pakistan had enough resources to survive through this difficult time.
“Pakistani authorities remain committed to the policies and reforms outlined under the EFF-supported program,” she added
Nevertheless, the IMF postponed the approval of the second analysis of the $6 billion bailout program to pave the way for this month’s $450 million disbursements.
Furthermore, Teresa Daban Sanchez explained, “The EFF is still there. We’re working on that. But now the priority is to work on the rapid financing instrument and that’s why everybody is working on that.”
The World Bank has approved $1 billion and the Asian Development Bank has approved $1.5 billion for Pakistan to keep its economy afloat.