Imran Khan's S.O.S answered; IMF to consider $1.4 bn loan to Pakistan to deal with Covid

International Monetary Fund (IMF) is all set to consider a loan of USD 1.4 billion for cash-strapped Pakistan to boost its foreign exchange reserves in wake of ecomic slowdown due to coronavirus crisis. USD 1.4 billion loan is in dition to USD 6 billion bailout pack that Pakistan has signed with IMF in July last year to stave off a balance of payment crisis.

global money lender has called its executive board meeting on April 16 to consider an extra loan of USD 1.4 billion for Pakistan to boost its foreign exchange reserves and extend budgetary support in wake of ecomic slowdown country is facing due to dely viral infection, Express Tribune reported on Monday.

Pakistan in March h requested IMF for a low-cost, fast-disbursing loan under fund's Rapid Financing Instrument (RFI) to deal with verse ecomic impact of COVID-19.

"We have been working with Pakistani authorities since request was placed. This USD 1.4 billion disbursement is scheduled to happen next week," IMF Resident Representative in Pakistan Teresa Daban Sanchez was quoted as saying by report.

RFI is used to provide financial assistance to IMF member countries facing an urgent balance of payments need without requiring m to put a full-fledged programme in place. Sanchez said IMF was working with finance ministry to make sure that Pakistan has "eugh resources to navigate through this difficult time".

Meanwhile, Prime Minister Imran Khan has appealed for a "global initiative on debt relief" to help developing countries like Pakistan to overcome disastrous impacts of vel coronavirus pandemic. In a televised speech on Sunday, Khan ted that dely virus posed unprecedented health and ecomic challenges and global recession is a certainty, which could be worse than "Great Depression".

"A global pandemic cant be contained without strong, coordinated and well-crafted global response," he said, urging international community, particularly United Nations Security Council and international financial institutions, to respond positively to dilemma confronting developing counties in wake of COVID-19 outbreak.

"In developed world, dilemma is coronavirus and ecomy. But we as a developing nation face ar major dilemma, how to prevent people from dying of hunger. I implore those who walk in corridors of power to make a stimulus pack for developing world to help m through this ecomic downturn," Khan said.

Pakistan has recorded more than 5,370 COVID-19 cases and over 92 people have died due to disease. government has alrey anunced Rs 1.2 trillion fiscal stimulus pack to offset verse impacts of viral pandemic on country's fragile ecomy. country also approached multilateral dors for ditional funds to fight pandemic and its ecomic implications. World Bank has earlier approved USD 1 billion and Asian Development Bank (B) USD 1.5 billion for Pakistan to keep its ecomy afloat.