IMF announces immediate disbursement of $1.1 billion to Pakistan
The International Monetary Fund (IMF) has announced an immediate disbursement of a 1.1 billion Dollars loan to Pakistan to help stabilise the crumbling economy of the South Asian country.
The decision came late on Monday after the IMF Executive Board completed the second review under the Stand-By Arrangement (SBA) to complete a total loan of three billion dollars agreed under a deal in 2023.
However, the global lender underlined the need for concerted efforts for sustainable recovery.
The bank said in a statement that “to move Pakistan from stabilisation to a strong and sustainable recovery, authorities need to continue the policy and reform efforts, including strict adherence to fiscal targets while protecting the vulnerable.
“Also a market-determined exchange rate to absorb external shocks; and broadening of structural reforms to support stronger and more inclusive growth.”
Pakistan’s economy was pulled back from the brink amid fears of default when the IMF approved a short-term three-billion-dollar bailout package.
Signed in July last year, Pakistan has already received 1.9 billion dollars under the programme.
Prime Minister, Shehbaz Sharif’s team laid the groundwork for yet another long-term bailout as the new government seeks to stabilise the economy.
Sharif’s government says it inherited the economic crisis from the previous government of Imran Khan, whose policies pushed the country to the brink.
The government is struggling to tackle soaring inflation, heavy debt burden, unemployment and high electricity and gas prices.
(dpa/NAN)