ISLAMABAD: The International Monetary Fund (IMF) Executive Board has delayed and increased the amount of the loan package for Pakistan from $6 billion to $6.5 billion.
In a news release, the Fund stated that the combined seventh and eighth reviews of the "extended arrangement" under the Extended Fund Facility (EFF) for Pakistan were concluded by the executive board.
According to the announcement, "The Board's resolution permits an immediate disbursement of SDR 894 million (about $1.1 billion), bringing the total purchases for budget support under the arrangement to approximately US$3.9 billion."
Pakistan's economy is predicted to increase by 3.5% this fiscal year, the country's unemployment rate is forecast to be 6%, and this fiscal year's government spending is projected to account for 17.1% of GDP.
The foreign exchange reserves may total 16 billion 22 crores by the end of current fiscal year, and the inflation rate may rise to 19.9 percent, according to an IMF statement.
The International Monetary Fund Board approved an extension of the EFF until end-June 2023, rephasing and augmentation of access by SDR 720 million, which will bring the total access under the EFF to approximately $6.5 billion, the Fund continued. This was done in order to support programme implementation, meet the higher financing needs in FY23, and "catalyse additional financing."
