28 June 2016 Current Affairs: The IMF has cleared immediate disbursement of USD 501 million to Pakistan, taking the total amount given to the cash-strapped country to USD 6.1 billion in since 2013.
In a statement, issued after the conclusion of 11th review of Pakistan's economic performance under a three-year programme supported by an Extended Fund Facility (EFF) arrangement, the International Monetary Fund said the decision enables the immediate disbursement of about USD 501 million to Pakistan.
On September 4, 2013, the IMF Executive Board had approved the 36-month extended arrangement under the EFF about USD 6.64 billion or 216 per cent of Pakistan's current quota at the IMF.
The IMF had earlier advised Pakistan to continue the reforms introduced during its engagement with the Fund as those reforms had been good for the economy.
The Fund had also reminded Pakistan that the current exports of USD 25 billion were not enough for an economy of over USD 280 billion and the country should aim to double that.
A recent IMF study also reminded Pakistan that it could double its tax revenues by making concerted efforts to broaden tax bases, strengthening tax compliance and rationalising the tax system in an efficient and equitable manner.
The study, 'Unlocking Pakistan's Tax Revenue Potential', noted that Pakistan's tax system did not promote efficiency and fairness and was complex and fragmented.
International Monetary Fund : The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., of "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.