In what comes as a big relief to Pakistan’s struggling economy, the International Monetary Fund (IMF) has approved $1 billion for Pakistan after the latter implemented reform measures suggested by the former, thus reviving the $6 billion package, which was stalled since June last year. The move came after the Pakistan government last month passed the State Bank of Pakistan Amendment bill, giving the central bank complete autonomy, as suggested by the global lender, reported Express Tribune.

Taking note of the measures, the IMF’s executive board on Wednesday completed the sixth review of the $6 billion Extended Fund Facility and approved $1 billion as the fourth trench, confirmed Shaukat Tareen, special advisor of Prime Minister Imran Khan, in a tweet.

Under the program, Islamabad has so far received $3billion. 

The program was put off by the IMF last year after the government had missed the primary budget deficit reduction target. Prime Minister Imran Khan’s government had refused to implement IMF measures for almost eight months, arguing it would increase “difficulties” for the lower-income groups.  

Finally, last month, the government was forced to pass a supplementary budget, cutting on government spending.

In January, the inflation rate skyrocketed to 13 percent—the highest in two years–and the current account deficit crossed $7 billion in the current fiscal year.

(SAM)