The International Monetary Fund’s Executive Board has approved a $7 billion Extended Fund Facility (EFF) for Pakistan.
After the development, the IMF’s first tranche of $1.1 billion likely to be released by September 30.
Sources in the Finance Ministry said that the interest rate on the loan is less than 5 per cent. They added that the IMF may disburse the second instalment within this fiscal year.
State Bank of Pakistan (SBP) Governor Jameel Ahmed while confirming the development said that Pakistan would receive the first tranche of $1.10 billion. Pakistan has fulfilled all demands of the global lender, he added.
In a statement issued from the sidelines of the UN General Assembly in New York, Prime Minister Shehbaz Sharif expressed satisfaction over the approval of the loan programme. He thanked IMF Managing Director Kristalina Georgieva and her entire team.
He also thanked the friendly countries, including China, Saudi Arabia and the United Arab Emirates, for helping Pakistan secure the bailout package.
