ISLAMABAD: The International Monetary Fund (IMF) on Monday approved a disbursement tranche of $1.1 billion for Pakistan, finalizing the second bailout package in eight years, local media reported.
As per reports the successful completion of the loan program came at a mounting cost, resulting in severe inflation.
Local media quoted sources as saying that Pakistan is expected to receive the loan payment by the end of this week.
The recent payment will be the third and final installment of a $3 billion Stand-By Arrangement (SBA) with the IMF. The loan was agreed by the IMF last summer to prevent a sovereign default.
The latest update comes after a meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva in Riyadh on Sunday.
PM Shehbaz, in his first meeting with the IMF chief since being re-elected, discussed the possibility of Pakistan entering a new program with the International Monetary Fund.
Pakistan is seeking another loan program with the IMF worth $6bn to $8bn spanning over three to four years. The IMF team is expected to reach Islamabad next month to discuss the terms and conditions of the new load program.
Pakistan is also aiming to receive additional funding under climate financing, and the matter will be on the agenda of the upcoming talks.
