Pakistan receives second tranche of IMF loan

KARACHI: Pakistan has received $554 million dollars as a second tranche of its $6.7 billion bailout loan from the International Monetary Fund (IMF) following which country's foreign exchange reserves would rise above $9 billion.

“Pakistan received the second tranche from IMF under the ongoing extended fund facility (EFF) on December 23," a spokesman for the State Bank of Pakistan (SBP) said in a statement.

The release of the installment will also bolster the bank’s declining foreign exchange reserves.

The Washington-based lender approved the EFF in September to help the struggling nuclear-armed country achieve economic reforms, particularly in its troubled energy sector.

The IMF made an initial payment of $540 million, and in November fund officials said during a monitoring visit that Pakistan was "broadly on track" with reforms.

Announcing the approval of the funds on Thursday, the IMF´s deputy managing director and acting chair Nemat Shafik warned that Pakistan must continue its reforms for the economy to recover, in particular to improve tax collection. (AFP)