ISLAMABAD - The International Monetary Fund (IMF) on Friday approved to release seventh tranche worth of $501.4 million for Pakistan.

The Executive Board of the International Monetary Fund (IMF) completed the sixth review of Pakistan’s economic performance under a 36-month programme supported by an Extended Fund Facility (EFF) arrangement. The Board’s decision enables the immediate disbursement of an amount equivalent to SDR 360 million (about $501.4 million), bringing total disbursements under the arrangement to SDR 2.52 billion (about $3.5 billion). On September 4, 2013, the Executive Board approved the three-year extended arrangement under the EFF in the amount of SDR 4.393 billion (about $6.12 billion, or 425 percent of Pakistan’s quota at the IMF).

Sources in Finance Ministry informed The Nation that Pakistan would receive the seven IMF’s installment worth of $501.4 million in next week, likely by Tuesday or Wednesday.

Pakistan and IMF held Sixth Review under the 3-year Extended Fund Facility (EFF) programme for an amount of $6.64 billion in Dubai from January 26 to February 5, 2015.

The upcoming seven tranche worth of $501.4 million would further increase the country’s foreign exchanges reserves. The country’s reserves currently stood at $16.13 billion wherein State Bank of Pakistan’s reserves are $11.07 billion and commercial banks $5.06 billion.

It is worth mentioning here Pakistan had already got eligible to avail $2 billion funding from International Bank for Reconstruction and Development (IBRD) during four-year period of Fiscal Years 2015-19 after country enhanced its foreign exchange reserves to more than 2.5 months of projected imports. The country was required to increase its foreign exchange reserves to three-month import bill (foreign exchange reserves around $15 billion level) for qualifying for IBRD (International Bank for Reconstruction and Development) funding of the World Bank.