ISLAMABAD – Pakistan has finally met the last prior action required for therelease of $1.1 billion of bailout funds from the International MonetaryFund under the seventh and eighth reviews.
IMF’s Resident Representative for Pakistan Esther Perez Ruiz confirmed thedevelopment, saying with the increase in petroleum development levy,Pakistan has completed all pre-conditions for funds.
The global lender’s official however mentioned that the meeting of the IMFboard to release the bailout funds for Pakistan is tentatively planned forlate August, once adequate financing assurances are confirmed by the SouthAsian country.
As of July 31st, the petroleum development levy stood at Rs10 per liter onpetrol and Rs5 each on HSD, kerosene, and LDO, reports suggest.
Last month, Islamabad and US-based lender reached a staff-level agreementfor the release of $1.17 billion under the combined 7th and 8th reviews ofPakistan’s Extended Fund Facility (EFF).
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The cast-strapped nation has been striving to revive the loan facilitywhich was halted after the ousted government of Imran Khan announcedsubsidy on fuel and energy prices.
However, Sharif-led government increased energy and fuel prices in recentmonths to implement reforms required by IMF to secure the next tranche.
