IMF approves fourth tranche for Pakistan

WASHINGTON: The International Monetary Fund (IMF) has approved the fourth tranche of more than one billion dollar for Pakistan which is expected to be received by early next year, reported ARY NEWS Wednesday.

The decision to approve the fourth tranche of $1.2 billion has been taken in the IMF executive board meeting held Washington.

The tranche is part of an agreement with the fund under which Pakistan will receive a total of $11.3 billion to avert a balance of payments crisis and shore up reserves.

Pakistan had initially negotiated a $7.6 billion loan with the IMF in November 2008 but the loan was later increased to $11.3 billion in July 2009. The fund has so far disbursed $5.32 billion.

The government has had eliminate subsidies on various items and increase power rates by 20 per cent in order to keep its budget deficit down to 4.8 per cent of GDP as per the conditions imposed by the IMF under the loan agreement.