IMF to Defer Sixth Review of $6 Billion Loan as Pakistan to Complete Prior Actions Yet


The International Monetary Fund (IMF) executive board is likely to delay the sixth review of the $6 billion Extended Fund Facility (EFF) on account of delay in implementation of some of the prior actions by the government, official sources told ProPakistani.

The government has tabled two bills including the Finance (Supplementary) Bill and the State Bank of Pakistan (SBP) Amendment Bill, 2021, in the Parliament as the prior conditions needed for the sixth review of the $6 billion EFF to get cleared by the IMF executive board. According to sources, till the passage of these important bills from the Parliament, the executive board meeting is unlikely to be held. However, they added, the board meeting would be scheduled soon after the passage of these bills from the Parliament.

The IMF executive board calendar was updated on Thursday on its website, showing that its meeting had been scheduled for January 12, 2022, and the agenda included, Pakistan – 2021 Article IV Consultation, Sixth Review, under the Extended Arrangement, under the Extended Fund Facility, and Requests for Waivers of Nonobservance of Performance Criteria and Rephasing of Access. However, later, Pakistan’s agenda was removed.

The completion of the review would make available SDR 750 million (about $1,059 million), bringing total disbursements under EFF to about $3,027 million.

Pakistan and IMF had reached a staff-level agreement on policies and reforms needed to complete the sixth review under the $6 billion EFF and issued a press statement on November 21, 2021.

The staff-level agreement is subject to approval by the executive board, following the implementation of prior actions, mainly on fiscal and institutional reforms.

Source: Pro Pakistani