Washington: The International Monetary Fund (IMF) has decided to provide Pakistan with a $ 1.4 billion loan next week to increase foreign exchange reserves and some budget support in response to the economic slowdown caused by the coronavirus pandemic.
The Pakistani government of Tehreek-e-Insaf (PTI) asked the currency fund last month to provide cheap, high-speed loans on the basis of the fund’s Rapid Financing (RFI) method in response to the negative economic impact of COVID-19.
Teresa Durban Sanchez, representative of the International Monetary Fund in Pakistan, said: “Since the request, we have been working with the Pakistani authorities … We plan to set aside a $ 1.4 billion loan next week.”
“The IMF was working with the Ministry of Finance to make sure that Pakistan had enough resources to navigate through this difficult time,” she said.
Teresa Daban Sanchez went on to say, “Pakistani authorities remain committed to the policies and reforms outlined under the Extended Fund Facility (EFF) supported program.
“The EFF is still there. We’re working on that. But now the priority is to work on the rapid financing instrument and that’s why everybody is working on that,” Sanchez explained.