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IMF Approves $497 Million Loan To Pakistan

Pakistan's Finance Minister Ishaq Dar shows a copy of the economic survey of fiscal year 2014-2015 during a news conference in Islamabad in June 2015.

The International Monetary Fund (IMF) says it will release the latest installment worth $497 million of a three-year economic bailout package to Pakistan.

The IMF's delegation head, Harald Finger, speaking in Dubai on February 4, said the decision was made after a review of Pakistan's economic performance from January 26 to February 4.

Finger said Pakistan's economic growth rate is expected to reach 4.5 percent for the 2015-16 financial year due to lower oil prices, planned improvements in the energy supply, and investment in the China Pakistan Economic Corridor project.

But Finger said Islamabad needed to carry out more reforms in the energy and taxation sectors.

The IMF approved the latest installment of the loan despite Pakistan reneging on promises it made to the IMF in exchange for the loan, including privatizing its power-supply companies and missing deadlines to sell other loss-making state firms.

Based on reporting by Reuters and AFP