IMF deposits much-awaited $1.2B with Pakistan's central bank under bailout, finance minister says

abcnews.go.com:

Pakistan's finance minister says the International Monetary Fund has deposited the much-awaited first installment of $1.2 billion with the country's central bank under a new bailout

ISLAMABAD — Pakistan’s finance minister on Thursday said the International Monetary Fund deposited a much-awaited first installment of $1.2 billion with the country’s central bank under a recently signed bailout aimed at enabling the impoverished Islamic nation to avoid defaulting on its debt repayments.

Minister Ishaq Dar in televised remarks said the remaining $1.8 billion would be received from the IMF over the next nine months. The funds will bolster the country's foreign exchange reserves, which shrank to less than $4 billion in recent months, raising fears of a default.

The country’s foreign exchange reserves are likely to rise to $14 billion this week, Dar said.

The latest development came a day after the IMF said its executive board had approved an agreement to release a $3 billion loan to support Pakistan’s economic stabilization program.

Wednesday’s announcement came less than two weeks after Pakistan and the IMF agreed to the plan following meetings with Prime Minister Shehbaz Sharif, Dar and other officials.

On Wednesday, IMF head Kristalina Georgieva said in a statement that “Pakistan’s economy was hit hard by significant shocks last year, notably the spillovers from the severe impacts of floods, the large volatility in commodity prices, and the tightening of external and domestic financing conditions.”

She said the $3 billion bailout, if “implemented faithfully” by Pakistan, will give it an opportunity to regain macroeconomic stability and address imbalances through consistent policy implementation.

The IMF bailout for