ISLAMABAD – Despite depressive economic situation of the country, the government is all set to repay $783 million 2nd installment to the International Monetary Fund (IMF) during next month.
Pakistan had already repaid $417 million first installment to the International Monetary Fund in the last week of February this year.
An official who wished not to be named told news agency that government will pay back total amount of $1.2 billion to International Monetary Fund during current fiscal year 2011-12 out of which first installment of $417 million has been paid back whereas the second installment of $783 million will be repaid till June 30th this year from foreign currency reserves held by the State Bank of Pakistan (SBP).
According to repayment schedule agreed between Pakistan and IMF, Pakistan will repay its obtained $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA programme had expired on September 30, 2011 and the last two tranches of $3.7 billion could not pay to Pakistan by IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco. The foreign exchange reserves stood at $16.645 billion by the week ended on February 17 of which $7.6 billion is loans obtained from the Fund under the existing SBA programme.
Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30, 2011.