ISLAMABAD: The International Monetary Fund (IMF) has released 498.7 million US dollars to support the Pakistani economy.

The State Bank of Pakistan (SBP) confirmed the news in a tweet by saying, “The SBP has received IMF tranche of US$ 498.7 million (equivalent to SDR 350 million) under the Extended Fund Facility.”

Sources said that Pakistan had signed the Extended Fund Facility with the IMF, under which the IMF had to give six billion dollars loan to the country. So far, Pakistan has got 1.95 billion dollars from the IMF in three tranches.

The loan programme was halted due to outbreak of COVID-19 and it resumed a fortnight ago. The revival of the loan programme will boost foreign investors’ confidence in Pakistan.

The programme revived after the government took some tough decisions including hike in electricity tariff, withdrawal of income tax exemption worth Rs140 billion and introduction of controversial amendments in the SBP’s laws to make it an independent institution.

IMF Executive Board Meeting had sought submission of complete roadmap to the IMF regarding increment in electricity prices and tax revenue.