The International Monetary Fund (IMF) logo is seen at the International Monetary Fund-World Bank Annual Meeting 2018 in Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo/Files

ISLAMABAD: Pakistan on Thursday received a $454 million second tranche from the International Monetary Fund (IMF) under a $6 billion Extended Fund Facility (EFF).

The $454-million payment would be added to the country's foreign exchange reserves — currently at $17.6 billion — by next week. 

The IMF approved the EFF installment last Friday, saying that the country's programme was on track and had started to bear fruit. However, it had warned that the risks remained.

Also read: IMF says ‘reform programme on track’, approves $452m second tranche

The approval came from the IMF's Executive Board, which had made its decision after completing the first review of Pakistan’s economic performance.

Commitment to 'sustaining the progress'

The organisation's first deputy managing director and acting chair, David Lipton, had said at the time: "Strong ownership and steadfast reform implementation are critical to entrench macroeconomic stability and support robust and balanced growth."

Noting the authorities' commitment to "sustaining the progress", Lipton added: "The planned reforms include strengthening tax revenue mobilisation, including the elimination of tax exemptions and loopholes, and prudent expenditure policies. Preparations for a comprehensive tax policy reform should start early to ensure timely implementation."

He had added that the ongoing monetary stance was "appropriately tight" and should only be eased once disinflation is firmly entrenched.

"Strengthening the State Bank of Pakistan’s autonomy and governance will support these efforts," the IMF official had said.