IMF finally approves $3 billion bailout package for Pakistan

Islamabad (Best Hindu News): The International Monetary Fund (IMF) has announced that its executive board has approved a $3 billion bailout program for Pakistan. With this, $ 1.2 billion will be given immediately to help the country facing the cash crunch.
In a statement released late on Wednesday, the IMF said, “The IMF’s executive board has approved a nine-month stand-by arrangement for assistance to Pakistan amounting to approximately $3 billion, or 111 per cent of the quota,” Dawn news reported. SBA) is approved.”

“A tough external environment, devastating floods and wrong policies have resulted in huge deficit in foreign exchange along with fiscal deficit, inflation in the country.” Following the announcement, Prime Minister Shehbaz Sharif said the bailout was a major step in efforts to stabilize the economy, BBC reported. “It will help Pakistan overcome immediate to medium-term economic challenges and strengthen its economic position,” he said.

It is noteworthy that earlier this week, Pakistan also received $2 billion in funding from Saudi Arabia and $1 billion from the United Arab Emirates. The deal with the IMF came after eight months of difficult negotiations on how to deal with serious long-term issues with Pakistan’s ailing economy. The beleaguered country is on the verge of being unable to repay the loans to the creditors.

Last year, most of the country was affected by devastating floods, adding to the country’s problems. As per BBC report, the cost of living in Pakistan is on the rise. The official annual rate of inflation is currently around 30 percent. Last month, the State Bank of Pakistan raised its interest rate to a record high of 22 percent. Pakistan has taken loans from the international lender more than 20 times since 1958.