International Monetary Fund revives Pakistan's EFF programme; approves $1.17bn bailout fund

The international lender approved the 7th and 8th tranche of $1.17 billion for Pakistan at an executive meeting in Washington.

Pakistan has secured a much-needed bailout package from the International Monetary Fund (IMF), which will help the cash-starved country avert an imminent default, amidst the persisting political uncertainty and the devastating floods that has displaced more than 33 million people.

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The international lender approved the 7th and 8th tranche of $1.17 billion for Pakistan at an executive meeting in Washington on August 29.

Finance Minister Miftah Ismail said the International Monetary Fund's Board has approved the revival of Pakistan's Extended Fund Facility (EFF) programme.

"We should now be getting the 7th & 8th tranche of $1.17 billion. I want to thank the Prime Minister @CMShehbaz for taking so many tough decisions and saving Pakistan from default. I congratulate the nation," tweeted Mr. Ismail, who had left no stone unturned to fulfill the hefty demands of the donor.

"The formal resumption of an IMF programme is a major step forward in our efforts to put Pakistan's economy back on track. It is the outcome of an excellent team effort. I commend Finance Minister Miftah Ismail & his team and other stakeholders for their hard work," Prime Minister Shehbaz Sharif said in a tweet.

In a statement, the IMF announced that the executive board completed the combined seventh and eighth reviews of the "extended arrangement" under the EFF for Pakistan.