Pakistan receives $991.4 million from IMF

ISLAMABAD, Pakistan

Pakistan's central bank on Wednesday said the country has received the first tranche of $991.4 million of the total $6 billion bailout package of International Monetary Fund (IMF).

"SBP [the State Bank of Pakistan] has received IMF first tranche of $991.4 million which is equivalent to SDR [Special drawing rights] 716 million," spokesman of the bank said in a statement.

On July 3, IMF approved a much-awaited $6 billion bailout package for Pakistan to revive its ailing economy.

As per IMF plan, Islamabad will received $2 billion annually in phases under an extended fund facility, which has been linked with a condition of a quarterly review of the country's performance by the IMF.

Under the agreement, the government will no longer control the dollar value against rupee (local currency). Instead, it will be dealt by the open market.

The dollar was trading around Rs 124 Pakistani when Prime Minister Imran Khan took the office last year in August, which now rose to Rs 158.

The government also increased the costs of electricity and gas for the consumers after this deal, the move largely criticized by the public.

Khan's government has also recently appointed an IMF employee as governor of the State Bank of Pakistan and replaced his finance minister as well -- a move viewed as "outsourcing the economy to IMF" by the opposition.

On July 8, the Asian Development Bank announced that the bank had planned to support Pakistan with indicative lending of up to $10 billion.

"ADB has planned to support Pakistan with indicative lending of up to $10 billion for various development projects and programs during the next five years," the bank said in a statement.

ADB plans to provide about $2.1 billion out of $3.4 billion funds to support Pakistan’s reform and development programs during fiscal year 2019–2020, the statement further added.

Pakistan became a founding member of ADB in 1966 and since then has received $32 billion in project assistance. The country has since been working with ADB to strengthen its key infrastructure, social services, and economic growth.

Recently, Saudi Arabia and the United Arab Emirates (UAE) have also announced $6 billion each and Qatar $3 billion bailout packages for Pakistan.

Islamabad’s current external debt stands at nearly $100 billion -- the bulk of it borrowed from the World Bank, IMF, Asian Development Bank, Islamic Development Bank, the United States, China, France and other countries.

The South Asian nuclear state has conceded a loss of over $100 billion since 2002 after it joined the U.S.-led war against terrorism.