The International Monetray Fund has agreed to allow Pakistan to utilise $2.78 billion provided to combat Covid pandemic, in a bid for it to meet its budgetary requirements, according to Geo.

According to the report, in usual circumstances the IMF provides Balance of Payment (BoP) support to recipient countries. However, in special cases, it allows countries to utilise its resources to finance budgetary requirements.

On Pakistan's request, the IMF has agreed in principle and an announcement related to the matter is expected along with the approval of $1 billion tranche under pending sixth review of an Extended Fund Facility (EFF).

Under the Special Drawing Rights Program, Pakistan had received $2.78 billion -- equivalent to Rs500 billion -- from the IMF as the Fund announced $650 billion programmes for low-income countries severely hit by the pandemic.

Quoting official sources, the report stated the IMF shared an initial draft of the Memorandum of Financial and Economic Policies (MEFP) with Pakistan and Islamabad sought some explanations before reaching a staff-level agreement.

The report further added the lending body requires political support from the highest office of the country to get assurances that all IMF conditions will be implemented in true letter and spirit.

It further said the all things were almost finalised and a staff-level agreement with the IMF was expected soon.