IMF approves $1.39bn in COVID-19 aid for Pakistan

• The funds will help Pakistan deal with a decline in international reserves.
• The funds allow it to fund targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact.

WASHINGTON: The International Monetary Fund on Thursday said its executive board had approved $1.386 billion in emergency financing to Pakistan to meet balance of payments needed stemming from the novel coronavirus pandemic.

The funds, to come from the IMF's Rapid Financing Instrument, will help Pakistan deal with a decline in international reserves and allow it to fund targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact, the IMF said.

IMF First Deputy Managing Director Geoffrey Okamoto said "expeditious donor support was needed to close the remaining balance of payments gap and ease the adjustment burden."