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Pakistan on Tuesday received the fourth tranche of $1.2 billion of the stand-by loan from the International Monetary Fund to meet its current account deficit and debt payment obligations. Sources said the Fund has transferred the first tranche into the central bank''s account in New York between Monday and Tuesday night, primarily aimed to save the country from a default situation.
After receiving the tranche, the country''s foreign exchange reserves have surged to around 15 billion dollars. However, the accurate statistics of the foreign reserves would be released by the central bank next Thursday, sources said. "Yes, the central bank has received the fourth instalment worth 1.2 billion dollars from the IMF as a long-term loan," confirmed Syed Wasimuddin, spokesman for the State Bank of Pakistan.
But, he said the fourth tranche would not be reported in the weekly statement of forex reserves (to be issued on December 31, 2009) and the reflection of payment would be witnessed in the next week''s report that would be released on January 7, 2010. This is fourth tranche of the IMF programme, which was rejoined by Pakistan in November 2008 and so far the country has received 6.5 billion dollars from the Fund on account of long term loan, sources added.
They said the IMF loan is a bailout package of 23 months and the approved amount of 7.6 billion dollars is some five times higher than the Pakistan''s quota, while on Pakistan''s request, the IMF has enhanced its package by some 4 billion dollars by July this year and now the overall package has moved up to 11.3 billion dollars.
They said the remaining amount worth 4.8 billion dollars would be disbursed during the next 11 months after reviewing the quarterly performance of Pakistan. "The next instalment of worth approximately 1.2 billion is expected in the April 2010 as per the agreement with the Fund," they added.

Copyright Business Recorder, 2009

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