WASHINGTON May 10 Pakistan has made progress in
its economic reforms and the International Monetary Fund's board
will likely meet in late June to decide whether to clear the way
for the latest installment in a $6.6 billion loan, the fund said
The IMF "is encouraged by the overall progress made in
pushing ahead with policies to strengthen macroeconomic
stability and reviving investment and growth," said Jeffrey
Franks, IMF mission chief for Pakistan.
"Economic indicators are generally improving, with growth
gaining momentum, external finance improving, and credit to the
private sector rising. However, core and headline inflation are
also rising," Franks said in a statement.
A staff report was tentatively scheduled to be considered by
the IMF executive board in late June and, if approved, the
review would make an additional $550 million available to
Pakistan, he said.
The IMF saved Pakistan from possible default by agreeing
last September to lend it $6.6 billion over three years, making
the loan conditional on economic reforms such as a longstanding
promise to privatize loss-making state companies.
The IMF disburses loan tranches after confirming a country
is on track with the conditions of the bailout. To date,
Pakistan has received three tranches totaling about $1.6 billion
from the lender.
(Editing by Mark Trevelyan)