Pakistan: Relief to Pakistan facing economic crisis, IMF gives final approval to loan of three billion dollars
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Prime Minister Shehbaz Sharif expressed happiness over the bailout programme.
After a long time, Pakistan has now got relief. The International Monetary Fund (IMF) has given great relief to Pakistan, which is facing economic crisis. IMF has given final approval to Pakistan's USD 3 billion bailout programme.
Amount will be given in a phased manner
An IMF official said that the executive board has approved a nine-month stand-by arrangement for SDR 2,250 million (US$3 billion) to support Pakistan. IMF says that bailout program has been approved to get Pakistan out of economic crisis. According to Pakistani media, the IMF approval allows immediate disbursement of US$1.2 billion. The remaining amount will be disbursed in a phased manner after two quarterly reviews. To meet the IMF conditions, Pakistan had to seek US$2 billion from Saudi Arabia and US$1 billion from the UAE.
Prime Minister Sharif expressed happiness
Prime Minister Shehbaz Sharif expressed happiness over the bailout programme. Sharif tweeted that the IMF's executive board had a short while ago approved a stand-by agreement of US$ 3 billion. The bailout program is a result of the government's efforts to stabilize the economy. Immediate and medium term economic challenges can be overcome with the help of IMF. This will strengthen the economic condition of Pakistan.
How much did Pakistan lose due to the delay in the deal?
Pakistan's economy has been on the verge of collapse for a long time. External economic shocks caused by the 2022 flood, the Russia-Ukraine war, among other things, brought it to the brink. In November 2022, the IMF decided to stop disbursing funds under the 2019 EFF. A pending payment of $1.18 billion was due, but was put on hold by the IMF due to the government's reluctance to meet certain demands, including assurances to stop increasing energy tariffs, imposing higher taxes and exchange rate controls. This further weakened the economic condition of Pakistan. This is the reason that started the foreign exchange crisis and record inflation in the country which is still going on.
