Pakistan receives final tranche of $1.1 billion as part IMF loan program — central bank

The seal of the International Monetary Fund is seen outside of its headquarters in Washington, DC on October 7, 2021. The annual meetings are running from October 11-17, 2021. (AFP/File)
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Updated 30 April 2024
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Pakistan receives final tranche of $1.1 billion as part IMF loan program — central bank

  • The IMF executive board completed the second review of the $3 billion loan program in its meeting on Monday
  • The approval came a day after PM Sharif’s meeting with IMF Managing Director Kristalina Georgieva in Riyadh

ISLAMABAD: Pakistan has received a final tranche of $1.1 billion as part of a $3 billion International Monetary Fund (IMF) loan program it entered last summer, the central bank said on Tuesday.

The IMF executive board completed the second review of the Stand-by Arrangement (SBA) in its meeting on Monday and approved the disbursement of SDR 828 million ($1.1 billion) for Pakistan, according to the State Bank of Pakistan (SBP).

The approval came a day after Pakistan Prime Minister Shehbaz Sharif discussed a new loan program with IMF Managing Director Kristalina Georgieva on the sidelines of a World Economic Forum (WEF) meeting in the Saudi capital of Riyadh.

“SBP has received SDR 828 million (around $ 1.1 billion) in value 29 Apr 2024 in its account from IMF,” the central bank said in a statement. “The amount shall be reflected in SBP’s foreign exchange reserves for the week ending on 3rd May 2024.”

Pakistan secured the $3 billion IMF program in June last year, which helped it avert a sovereign default. Islamabad says it is seeking a new loan over at least three years to help achieve macroeconomic stability and execute long-overdue reforms.

Finance Minister Aurangzeb has said Islamabad could secure a staff-level agreement on the new program by early July, though he has declined to detail what size of the program it seeks. If secured, it would be Pakistan’s 24th IMF bailout.

The $350 billion South Asian economy faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year — three-time more than its central bank’s foreign currency reserves.

Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the fiscal year ending in June, while average inflation for the year is projected to stand at 24 percent, down from 29.2 percent the previous fiscal year.


Islamabad steps up vehicle checks to boost security as 166,000 cars get electronic tags

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Islamabad steps up vehicle checks to boost security as 166,000 cars get electronic tags

  • Authorities say over 3,000 vehicles registered in past 24 hours as enforcement intensifies
  • Extended service hours introduced to push full compliance with digital monitoring system

ISLAMABAD: Authorities in the Pakistani capital have intensified enforcement against vehicles without mandatory electronic tags with more than 166,000 cars now registered, according to data released on Sunday evening, as Islamabad moves to strengthen security and digital monitoring at key entry and exit points.

The Islamabad Capital Territory (ICT) administration introduced the electronic tagging system late last year as part of a broader effort to regulate traffic, improve record-keeping and enhance surveillance in a city that hosts the country’s main government institutions, foreign missions and diplomatic enclaves.

Under the system, vehicles are fitted with electronic tags that can be read automatically by scanners installed at checkpoints across the capital, allowing authorities to identify unregistered vehicles without manual inspections. Vehicles already equipped with a motorway tag, or m-tag, are exempt from the requirement.

“A total of 166,888 vehicles have successfully been issued M-Tags so far, including 3,130 vehicles in the last 24 hours,” the ICT administration said, according to the Excise Department.

Officials said readers installed at checkpoints across Islamabad are fully operational and are being used to stop vehicles still without tags, as enforcement teams carry out checks across the city.

To facilitate compliance, authorities have expanded installation facilities and extended operating hours. The Excise Department said m-tag installation is currently available at 17 booth locations, while select centers have begun operating beyond normal working hours.

According to Director General Excise Irfan Memon, m-tag centers at 26 Number Chungi and 18 Meel are providing services round the clock, while counters at Kachnar Park and F-9 Park remain open until midnight to accommodate motorists unable to visit during daytime hours.

Officials said the combination of enforcement and facilitation was aimed at achieving full compliance with minimal disruption, adding that operations would continue until all vehicles operating in the capital are brought into the system.

The enforcement drive builds on a wider push by the federal government to integrate traffic management, emergency response and security monitoring through technology-driven “safe city” initiatives. Last month, Interior Minister Mohsin Naqvi reviewed Islamabad’s surveillance infrastructure and said reforms in monitoring systems and the effective use of technology were the “need of the hour.”

Authorities have urged motorists to obtain electronic tags promptly to avoid delays and penalties at checkpoints as enforcement continues across the capital.