Foreign Direct Investment (FDI) to the country stood at $98.5 million during the month of July. According to the data released by the State Bank of Pakistan, FDI inflows during the first month of the current fiscal year are down by 46 per cent as compared to the same month in the preceding year.

“The primary aim is to deliver on the commitment of tax reforms by buying more time and secondly it will leave no time for the last meeting before the end of $11.3 billion programme in December,” said a key government official on condition of anonymity. “Pakistan does not want to avail of the last tranche of $1.2 billion due to better position of foreign exchange reserves,” the official added. The IMF loan cannot be used for budgetary support and the money can only be spent on import bills.