International Monetary Fund Approves $6 Billion Loan For Pakistan
The International Monetary Fund Executive Board on Wednesday approved a three year, $6 Billion loan for Pakistan. The much-anticipated bailout will be the country`s 13th bailout package from IMF.
In light of the board`s decision, Pakistan will be receiving $2 billion per year for the next three years. Gerry Rice, IMF Spokesperson tweeted the following details with regards to Pakistan`s loan.
“IMF Executive Board approved today a three-year US$6 billion loan to support #Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living.”
IMF Executive Board approved today a three-year US$6 billion loan to support #Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living. pic.twitter.com/HCAMr1KWfK
— Gerry Rice (@IMFSpokesperson) July 3, 2019
AFP reports that the Fund has already released $1bn to Pakistan immediately. It will monitor Pakistan`s performance for the next 39 months on a quarterly basis to release payments further.
Advisor to the Prime Minister of Finance, Dr. Abdul Hafeez Shaikh tweeted regarding the approval as well.
IMF Board approved a $6 billion Extended Fund Facility (EFF) for Pakistan to support our economic reform program. Our program supports broad based growth by reducing imbalances in the economy. Social spending has been strengthened to completely protect vulnerable segments.
— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) July 3, 2019
Dr. Shaikh`s tweet focused on the economic goal of the incumbent government amid IMF bailout.
Our program supports broad-based growth by reducing imbalances in the economy. Social spending has been strengthened to completely protect vulnerable segments.
Dr. Shaikh further hinted towards structural reforms that the government might pursue in the near future. The loan comes as a part of the Extended Fund Facility (EFF).
According to IMF, “The EFF provides assistance in support of comprehensive programmes that include policies of the scope and character required to correct structural imbalances over an extended period.”
The staff level agreement between Pakistani authorities and the IMF required board approval for further validation which was granted by the IMF executive board.
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