IMF approves $1.386 bn in Emergency Financing to Pakistan to Combat COVID 19.

IMF approves $1.386 bn in Emergency Financing to Pakistan to Combat COVID 19.

The outbreak of COVID-19 is having a significant impact on the Pakistani economy. The domestic containment measures, coupled with the global downturn, are severely affecting growth and straining external financing. This has created an urgent balance of payments need

First Deputy Managing Director and Acting Chair Geoffrey Okamoto

On Thursday, the Executive Board of the IMF approved a disbursement of funds under the Rapid Financing Instrument (RFI). The funds are released to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.

Also Read: IMF Recognizes The Efforts Of Pakistan In Responding The Pandemic

However, the statement issued by IMF states that this support will help to provide a backstop against the decline in international reserves. Also, it will support the financing of the budget for targeted and temporary spending. As, in order to prevent the spread of the pandemic, Pakistan is increasing public health spending and strengthening social safety.

Dr Reza Baqir, the governor of the State Bank of Pakistan, said, “Pakistan will receive a significant boost to its foreign exchange reserves and fiscal space to combat Covid-19 through $1.4 billion RFI [Rapid Financing Instrument] approval by the IMF as well as the debt relief from official creditors approved by G-20.”

The post IMF approves $1.386 bn in Emergency Financing to Pakistan to Combat COVID 19. appeared first on Nation Bytes.