ISLAMABAD  - Despite depressive economic situation of the country, Pakistan on Friday repaid $417 million first installment to the International Monetary Fund (IMF) from foreign currency reserves held by the State Bank of Pakistan (SBP).

An official who wished not to be named told Online that the government will pay back total amount of $1.2 billion to International Monetary Fund during current fiscal year 2011-12 out of which first installment of $417 million has been returned whereas the 2nd installment of $783 million will be repaid on June 30th this year.

According to the repayment schedule agreed between Pakistan and IMF, Pakistan will repay $7.6 billion loan to the IMF till the end of fiscal year 2014-15.

 The $11.3 billion SBA programme had expired on September 30, 2011 and the last two tranches of $3.7 billion could not be released to Pakistan by the IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco. The foreign exchange reserves stood at $16.645 billion by the week ended on February 17.

Independent economists were of the view that with the repayment of first installment to IMF will start increasing pressure on country’s economy.