Pakistan requested IMF for $1.4 billion as a loan under the RFI (Rapid Financing Instrument) for which the IMF’s executive board is going to meet in order to consider the request. RIF is asked to deal with all the economic chaos caused by the COVID-19 outbreak.
In March, the Managing Director IMF said that Pakistan has asked for a $1.4 billion loan under Rapid Financing Instrument. They also said that the fund’s team is working swiftly to respond to the request so that a proper proposal can be considered by the IMF as quickly as possible.
It is important to notify that this loan for $1.4 billion is an addition to the bailout package which is of $6 billion signed by Pakistan with IMF last year.
The Finance Adviser of Pakistan Abdul Hafeez Sheikh said that this loan which the country is asking for will be a low cost and fast spending loan. He also stated that the country would want IMF to consider this loan to funds which it had already set aside to help for the losses of the economies all over the world in the wake of coronavirus.
The finance adviser further added that before the losses get appraised; the country wants to save the funds.
On the other hand, Shah Mehmood Qureshi this Thursday announced that IMF will be providing Pakistan with major Debt relief for the economic disorder in Pakistan caused due to the pandemic disease. That relief will be for 1 year and will be applicable from the 1st of May.