Washington: The International Monetary Fund (IMF) has cleared a $ 114 million payment to Pakistan after a review of its economic performance.

The IMF's executive board unlocked the tranche from a three-year, $ 1.37 billion program despite Pakistan's failure to meet a revenue target for the three months to March 31.

"The shortfall in revenue essentially reflected continued lower-than-expected imports in the aftermath of September 2001 events," the IMF said in a statement on July 3.

IMF deputy managing director Eduardo Aninat said the Fund directors praised Pakistan for pushing through structural reforms in a difficult economic and political environment.

"Inflation remains low and strong private capital inflows and remittances have allowed a build up of official reserves well above program targets," he said.

The fiscal deficit at the end of March 2002 also was lower than programmed.

"Disappointingly, tax revenue collected by the Central Board of Revenue as well as social sector spending were lower than targeted, although recent developments point to improved performance in these areas," Aninat said.

Barring deterioration in the regional security situation or other shocks, Pakistan's gross domestic product was expected to grow 4.5 per cent in the fiscal year ending June 30, 2003, after accounting for inflation, he said.