The International Monetary Fund on Wednesday approved a $3 billion bailout for the cash-strapped Islamic Republic of Pakistan. The IMF said its executive board approved an agreement to release the funds over nine months to support Pakistan’s economic stabilisation program.
“The arrangement comes at a challenging economic juncture for Pakistan. A difficult external environment, devastating floods, and policy missteps have led to large fiscal and external deficits, rising inflation, and eroded reserve buffers” in the fiscal year 2023, the IMF said in a statement.
IMF head Kristalina Georgieva said the $3-billion bailout, if “implemented faithfully” by Pakistan, will give it an opportunity to regain macroeconomic stability and address imbalances through consistent policy implementation.
Pakistani PM Shehbaz Sharif welcomed the IMF decision.
“It bolsters Pakistan’s economic position to overcome immediate to medium-term economic challenges, giving the next government the fiscal space to chart the way forward. This milestone, which was achieved against the heaviest of odds & against seemingly impossible deadline, could not have been possible without excellent team effort,” Sharif said in a tweet.
