ISLAMABAD: The International Monetary Fund (IMF) board has approved the 6th tranche of their six billion dollar Extended Fund Facility program for Pakistan.
Federal Minister for Finance and Revenue Shaukat Tarin late Wednesday night took to the social media site, Twitter, to make the announcement.
“I am pleased to announce that the IMF Board has approved the 6th tranche of their programme for Pakistan”.
The IMF will now transfer a one billion dollar amount to Pakistan under the EFF program, bringing the total disbursements to about US$3.02 billion.
It is pertinent to note that the IMF had set two prior conditions, approval of the Finance supplementary bill, the State Bank Amendment bill, from parliament.
After dragging feet for eight months, the government of Prime Minister Imran Khan signed off all the conditions that it tried to resist first in June and then in October last year.
The government agreed to take Rs800 billion measures through a combination of cut in expenditures and imposition of about Rs500 billion in taxes, including Rs20 per litre fuel tax, to revive the stalled $6 billion IMF programme.
The Pakistan Tehreek-i-Insaf government managed to approve both bills from both houses of the parliament last week.
Under the Finance supplementary bill, the government, withdrawing the Rs343 billion exemptions, has imposed 17 per cent sales tax on around 144 items on the instruction of IMF.
On the other hand, the government has also given complete autonomy to the State bank of Pakistan under the SBP Amendment Bill, 2021.