IMF approves $1bn loan for Pakistan

(Web Desk): The International Monetary Fund’s (IMF) Executive Board has approved the immediate disbursement of about $1 billion to Pakistan under the ongoing Extended Fund Facility (EFF).

The decision was taken in the board's meeting in Washington, which also discussed Pakistan's request for the modification of performance criteria, and request for an arrangement under the Resilience and Sustainability Facility (RSF).

The ‘lender of the last resort’ and Islamabad reached a staff-level agreement (SLA) and agreed on the first review of the $7 loan facility in March. The SLA, a 28-month deal, would support Pakistan's efforts to mitigate and adapt to climate change, the IMF had said back then.

Pakistan secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.

The programme is critical to the $350 billion economy and Pakistan said it has stabilized under the bailout that helped it stave off a default threat.