Pakistan Fails to Secure Assurance on Last IMF Loan Tranche

Pakistan has failed to secure assurance that the International Monetary Fund will be releasing the final installment of the country’s $11.3 billion loan package, according to local reports.

“There are no indications that the [Pakistani] delegation [to the IMF-World Bank annual spring meeting] was able to convince the IMF to release the next tranche,” a diplomatic source was quoted by Pakistani newspaper the Dawn.

The official added that IMF is not likely to hold negotiations on a new loan until the sixth tranche of the current package is released. The Pakistani government has earlier indicated that it is interested in seeking another loan from IMF.

>> New IMF Loan for Pakistan Possible, Officials Say

In May 2010, IMF suspended the release of the final tranche of Pakistan’s current loan package due to the country’s failure to meet performance benchmarks, The Economic Times says.

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    Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.