The IMF on 3 July approved a USD 6 billion loan over a\nperiod of three years for cash-strapped Pakistan, aimed at returning\nsustainable growth to the country’s fragile economy and improve the standards\nof living.<\/p>\n\n\n\n
Pakistan’s finance ministry approached the International\nMonetary Fund (IMF) in August 2018 for a bailout package when the Imran Khan\ngovernment took over.<\/p>\n\n\n\n
“IMF Executive Board approved today a three-year USD 6\nbillion loan to support #Pakistan\u2019s economic plan, which aims to return\nsustainable growth to the country\u2019s economy and improve the standards of\nliving,” IMF spokesperson Gerry Rice tweeted on Wednesday.<\/p>\n\n\n\n
The USD 6 billion financial aid includes an immediate\ndisbursement of USD 1 billion to help Pakistan address its balance of payment\ncrisis.<\/p>\n\n\n\n
“The remaining amount will be phased over the duration\nof the programme, subject to four quarterly reviews and four semi-annual\nreviews,” the IMF said in a statement.<\/p>\n\n\n\n
The IMF Executive Board “approved a 39-month extended\narrangement” under the Extended Fund Facility (EFF) for Pakistan for USD 6\nbillion to support its economic reform programme, it said.<\/p>\n\n\n\n
“The EFF-supported programme will help Pakistan to\nreduce economic vulnerabilities and generate sustainable and balanced growth\nfocusing on: a decisive fiscal consolidation to reduce public debt and build\nresilience while expanding social spending; a flexible, market-determined\nexchange rate to restore competitiveness and rebuild official reserves; to\neliminate quasi-fiscal losses in the energy sector; and to strengthen\ninstitutions and enhance transparency,” the statement added.<\/p>\n\n\n\n
Meanwhile, Dr Abdul Hafeez Shaikh, Advisor to Pakistan prime\nminister on Finance, in Islamabad said the IMF’s move is a testimony of the\ngovernment’s resolve to ensure financial discipline and sound economic\nmanagement in the country.<\/p>\n\n\n\n
In a tweet, he said the IMF granted the loan to support\nPakistan’s economic reform programme.<\/p>\n\n\n\n
“Our programme supports broad based growth by reducing\nimbalances in the economy. Social spending has been strengthened to completely\nprotect vulnerable segments,” he said.<\/p>\n\n\n\n
A structural reform agenda, which includes improving public\nfinances and reducing public debt through revenue reforms, is the key part of\nthe programme, Shaikh added.<\/p>\n\n\n\n
Pakistan last month reached an agreement with the IMF on the\nbailout package after marathon talks.<\/p>\n\n\n\n
Khan changed the entire economic team including the finance\nminister, chief of State Bank of Pakistan (SBP) and head of Federal Bureau of\nRevenue (FBR) under criticism for failure to improve the economy.<\/p>\n\n\n\n
The latest deal is the 22nd bailout package since Pakistan\nbecame member of the IMF in 1950.<\/p>\n\n\n\n
Pakistan has so far received billions in financial aid\npackages from friendly countries like China, Saudi Arabia and the UAE during\nthe current fiscal year.<\/p>\n\n\n\n
Last month, Pakistan secured a bailout package of USD 3\nbillion from oil-rich Qatar.<\/p>\n\n\n\n
Earlier, China gave USD 4.6 billion in shape of deposits and\ncommercial loans and Saudi Arabia provided USD 3 billion cash deposit and USD\n3.2 billion oil facility on deferred payments. The United Arab Emirates also\nprovided USD 2 billion cash deposit.<\/p>\n","protected":false},"excerpt":{"rendered":"
The IMF on 3 July approved a USD 6 billion loan over a period of three years for cash-strapped Pakistan, aimed at returning sustainable growth to the country’s fragile economy and improve the standards of living. Pakistan’s finance ministry approached the International Monetary Fund (IMF) in August 2018 for a bailout package when the Imran […]<\/p>\n","protected":false},"author":13,"featured_media":3245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[58],"offerexpiration":[],"class_list":["post-3244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles","tag-international-current-affairs"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/3244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=3244"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/3244\/revisions"}],"predecessor-version":[{"id":3246,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/3244\/revisions\/3246"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/3245"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=3244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=3244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=3244"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=3244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}