WASHINGTON: The International Monetary Fund will send a mission to Pakistan next month to review the possibility of releasing the 6th and final tranche of an $11.3 billion loan package, Pakistani officials told Dawn.
Pakistan has already received more than $7 billion in five instalments. The 6th tranche, however, remains suspended since May 2010 because of the country`s inability to meet performance benchmarks attached to the standby arrangement.
Members of a Pakistani delegation, which came to Washington to attend IMF spring meetings, said they hoped the visit would lead to the release of the 6th tranche.
The Pakistani delegation also said that the World Bank had increased Pakistan`s portfolio to $4.5 billion over a period of three years.
As of March 1, 2011, Pakistan`s portfolio consisted of 22 active projects with the total commitment of $3.822 billion. The bank`s Pakistan trust funds portfolio has 55 active grants with a total commitment of $110.405 million.
The International Finance Corporation also has increased Pakistan`s portfolio to more than one billion dollars which is to be disbursed by the end of next year.
Pakistan became a member of IFC in 1955 and is considered a priority country for the corporation.
In fiscal year 2010 IFC committed over $516 million in the country, including $380 million in trade finance assistance to 11 banks. To date, IFC has committed almost $3 billion of its own funds in Pakistan.
The US Private Investment Corporation has set aside a fund of about $150 million to encourage investments in Pakistan.
OPIC is the US government`s development finance institution. It mobilises private capital to help solve critical world challenges and in doing so, advances US foreign policy.
Meanwhile, after a meeting of the US-Pakistan Strategic Dialogue Working Group on Economics and Finance in Washington on Monday, the US government encouraged Pakistan to continue its economic reforms.
“The United States recognised the measures that Pakistan implemented in recent months to expand revenue collection and control this year`s fiscal deficit,” said a joint statement issued after the meeting.
The United States “encouraged the government of Pakistan to continue efforts to strengthen the sustainability of its fiscal framework over time and to build broad consensus for these measures”.
“Major structural reforms, including in the energy sector, remain necessary to help create the conditions for strong growth and employment creation,” it added.
Recently, US Secretary of State Hillary Clinton advised Pakistan to broaden its tax base and brought wealthy and rich people in the tax net in order to become more financially independent.
Finance Minister Hafeez Shaikh led the Pakistani team in the meeting. The US team included Deputy Secretary of State for Management and Resources Thomas Nides, National Security Staff Senior Director for International Economics David Lipton, and Assistant Secretary of the Treasury Charles Collyns.
