Pakistan set to get USD 510 million from IMF

Pakistan is poised to get USD 510 million from the IMF as part of a three-year, USD 6.7 billion assistance programme, the bank said today while forecasting a real GDP growth of 4.7 per cent for the cash-strapped country in 2016-17.
The International Monetary Fund reviewed Pakistan's economic performance before saying that USD 510 million will be available under a three-year, USD 6.7 billion financial assistance programme.
The agreement was reached after the IMF mission held discussions with Finance Minister Ishaq Dar, Governor State Bank of Pakistan (SBP), Ashraf Wathra and other senior officials in Dubai from May 2 to May 11.

Dawn reported that the money will be provided when the review is approved by the IMF's management and executive board.
"After productive discussions, the mission and the Pakistani authorities have reached staff-level agreement on the completion of the eleventh review under the Extended Fund Facility (EFF) arrangement," said Harald Finger, the Fund's mission chief for Pakistan in a statement issued in Dubai.
The statement added that growth has remained robust despite a weak cotton harvest and declining exports amid a more challenging global environment.

"Real GDP growth is expected to reach 4.5 per cent in FY 2015/16 and 4.7 per cent in FY 2016/17, helped by favourable oil prices, rising investment, including related to the China Pakistan Economic Corridor (CPEC), improvements in energy supply, buoyant construction activity, and acceleration of credit growth."

IMF stated that all end-March 2016 quantitative performance criteria, including the budget deficit target and the floor on the SBP's net international reserves, have been met.
Pakistan's gross domestic product growth is projected at 4.5 per cent in the 2015/16 fiscal year and 4.7 per cent in the following year, the IMF said.