The International Monetary Fund (IMF) Executive Board on September 28 completed the twelfth and final review of Pakistan’s three-year economic reform program supported by an Extended Fund Facility (EFF) arrangement. The Board’s decision enables the immediate disbursement of the final tranche in an amount equivalent to the SDR 73 million in the IMF currency or about $102.1 million.
The go-ahead follows the approval on September 4, 2013, by the Executive Board of the 36-month extended arrangement under the EFF in the amount of SDR 4.393 billion (about $6.15 billion, or 216 per cent of Pakistan’s current quota at the IMF). The line was subject to completion of quarterly reviews.
The Hindu has learnt that India did not oppose the decision since the amount involved is not large. India's IMF Executive Director in Washington Subir Gokarn also represents Bangladesh, Bhutan and Nepal but not Pakistan, which is in the group that has Iran and other countries. This is despite the rising hostilities between the two neighbours which has led India to strive to isolate Pakistan globally through diplomatic efforts.
"Despite the challenges it faces, Pakistan is a country with abundant potential, given its geographical location and its rich human and natural resources... The authorities’ program is expected to help the economy rebound, forstall a balance of payments crisis and rebuild reserves, reduce the fiscal deficit, and undertake comprehensive structural reforms to boost investment and growth," the IMF had said in 2013.
Adherence to the program was also expected to catalyse the mobilisation of resources from other donors.
