IMF board confirms $7 billion bailout package for Pakistan

WASHINGTON: The International Monetary Fund (IMF) has approved an Extended Fund Facility (EFF) of $7 billion for Pakistan, here on Wednesday.

The decision was taken during the Executive Board meeting chaired by IMF Managing Director Kristalina Georgieva in Washington, in which Pakistan was at the top of the agenda.

Pakistan is expected to receive the first tranche of $1.1 billion by September 30, and the second tranche will also arrive within the same fiscal year once the loan program is approved.

The loan from the IMF will be given at an interest rate of less than 5 percent.

Speaking in New York earlier, Prime Minister Shehbaz Sharif said that he has fulfilled the strict conditions of the IMF and thanked Saudi Arabia, China and the United Arab Emirates and stressed that it would not have been possible without their support. was not

Two months ago, Islamabad secured a three-year EFF agreement with the IMF aimed at achieving macroeconomic stability and inclusive growth. The country also completed a $3 billion debt program in April and received credit rating upgrades from Moody’s and Fitch Ratings last month.

The ruling coalition government has taken steps towards structural reforms and highlighted the recent reduction in the policy rate, saying any borrowing would be on the government’s terms.