IMF Releases $1.13bn, Waives Two Conditions, DAWN, 16 May 2010
EXCERPT: "The International Monetary Fund (IMF) released $1.13 billion of loan to Pakistan on Saturday to help overcome its economic vulnerabilities and create room for urgent security outlays. The fund also accepted the government’s request for waiver of certain conditions in the current arrangement. In return, the government pledged to levy the value added tax (VAT) from July 1, as scheduled. It also had to accept some remedial actions proposed by the IMF. The IMF expressed the hope that the loan package would help the country overcome its economic vulnerabilities caused by a volatile security situation and persistent inflation. At a meeting held here, the IMF executive board approved waivers to give room for 'urgent security outlays and avoid undue cuts in other priority spending'. 'Pakistan's vulnerabilities remain high due to persistent inflation, security-related spending pressures, energy-sector problems and shortfalls in revenue collection and external financing,' IMF’s Deputy Managing Director Murilo Portugal said. But 'against a background of adverse security developments and a rapidly changing political environment, economic conditions have improved,' he said."
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