Disbursement of IMF loan to start end of August: Miftah

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ISLAMABAD: Federal Finance Minister Miftah Ismail announced on Tuesday that loan disbursements under the Extended Financing Facility (EFF) will begin by the end of this month, with the Executive Board of the International Monetary Fund (IMF) expected to meet. meet on August 29.

Addressing a press conference here, the Minister said that Islamabad had received a Letter of Intent (LoI) from the Fund requiring some amendments from the State Bank of Pakistan (SBP) and the Ministry of Finance, which were made after a meeting was held.

He informed that the new letter of intent had been received on Tuesday, which he would send back after signing, and added, “We expect the board meeting to be held in August, hopefully on the 29th, after which disbursement will begin”.

The minister said that the rupee has become the best currency in the world after a continuous appreciation against the dollar during the first 15 days of August.

The minister said imports were recorded at $0.80 billion in the financial year 2021-22 (FY22) while exports stood at $31.7 billion, bringing the trade deficit to 48 .3 billion. During the year, remittances were recorded at $30 billion. As a result, the current account deficit (CAD), he said, was recorded at $17.5 last year despite PTI being particularly focused on reducing it.

He pointed out that the PTI had left a $48 billion trade deficit while subsidizing fuel and granting amnesty to friends who had nearly brought the country to the point of default.

On the other hand, he said, the incumbent government monitors imports, exports and remittances, adding that so far there have been outflows of $3.4 billion and 4 .1 billion during the month of August. “So more dollars are coming in than they are going out,” he added.

Reiterating that the PML-N government saved the country from bankruptcy at the cost of putting its political capital on the line, he promised that the government would then work on controlling inflation.

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