ISLAMABAD: The interim federal government has banned the issuance of supplementary grants at the request of the International Monetary Fund, ARY News reported on Thursday.
According to the details, the report stated that only the next elected government will have the authority to issue supplementary grants, while the federal government will not have such authority.
Moreover, a certain amount will be disbursed to ministries and government departments and are also directed not to exceed their limits.
Earlier, Pakistan received a $700 million loan tranche from the IMF under the Standby Agreement (SBA) for a period of nine months.
Related: Pakistan gets $700 million loan tranche from IMF
This development comes days after the Executive Board of the International Monetary Fund completed the first review of Pakistan’s economic reform program supported by the standby agreement. T
The Council’s decision allowed for the immediate disbursement of approximately $700 million, bringing the total disbursements under this arrangement to approximately $1.9 billion.
The IMF approval follows the staff-level agreement reached between the Fund and Pakistan on November 15, 2023, which confirms the country’s commitment to implementing key reforms.
The agreement supports the authorities’ commitment to strengthen the planned fiscal consolidation process, accelerate cost-cutting reforms in the energy sector, complete the return to the market-determined exchange rate, and continue state-owned enterprises and governance reforms to attract investment and support job opportunities. Creation, while continuing to promote social assistance.
The current $3 billion IMF program is scheduled to end in the second week of April 2024, with about $1.8 billion remaining undisbursed. The fund issued the first tranche worth $1.2 billion in July.