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IMF approves $596 million credit

The International Monetary Fund (IMF) on Wednesday announced a credit of $596 million credit for Pakistan. The programme aims to move Pakistan on to a high and sustainable growth path by strengthening the balance of payment position, rebuilding official reserves, and reducing public sector indebtedness,” IMF managing director Horst Kohler stated. This is the first time since May 1999 that Pakistan has qualified for the multilateral financing to stabilise its strained balance of payments position. A stabilisation programme was badly needed to stem pressures on the rupee and bring official reserves to more comfortable levels, according to economic sources. The programme is to include comprehensive fiscal reforms, with specific initiatives to strengthen tax administration and enforcement, and taxpayer registration, the IMF stated on Wednesday. The approval of the IMF credit line will allow Pakistan to draw down $192 million immediately, with the remainder to be released in three payments by the end of June 2001 - contingent on the government fulfilling certain conditionalities.

This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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