The Government of Pakistan has received a letter of intent from the International Monetary Fund (IMF) regarding an extended loan facility, bringing the disbursement of the billion-dollar tranche for the combined seventh and eighth reviews one step closer.
The government will sign the letter of intent and return it to the IMF, according to Ministry of Finance sources, who added that the IMF Executive Board’s approval is now the final step in reviving the stalled Extended Fund Facility (EFF).
The IMF announced earlier this month that Pakistan had completed the last prior action for the combined seventh and eighth reviews following the increase in the petroleum development levy (PDL) and that the board meeting is tentatively scheduled for late August once adequate financing assurances are confirmed.
Following Executive Board approval, “approximately $1,177 million will become available, bringing total disbursements under the programme to approximately $4.2 billion,” the IMF stated at the time.
