IMF approves second tranche of $452m, says Pakistan's economic reform 'on track'.

The International Monetary Fund (IMF) on Thursday approved the second tranche of $452.4 million for Pakistan under the $6 billion Extended Fund Facility (EFF), declaring that Pakistan's reform programme is "on track and has started to bear fruit".

The Fund, after completing it's first review of Pakistan under the EFF, noted that "decisive" implementation of government policies had helped preserve economic stability in the country.

The IMF package, which was approved in July this year, is an effort to revive Pakistan's ailing economy through periodic release of funds over a 39-month period, conditional on the government meeting the Fund's policy guidelines.

Following the release of the latest tranche, the total amount of money so far granted by the IMF under the current programme will rise to $1,440m.

In a press release issued earlier today, the IMF noted that the "transition to a market-determined exchange rate has been orderly [and] inflation has started to stabilise, mitigating the impact on the most vulnerable groups of the population."

The IMF further observed that the "authorities remain committed to expanding the social safety nets, reducing poverty, and narrowing the gender gap."

At the same time, however, the Fund warned that "risks remain elevated". The press release quoted IMF's First Deputy Managing Director and Acting Chair David Lipton as saying: "Strong ownership and steadfast reform implementation are critical to entrench macroeconomic...

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