April 24, 2022
1 min read

A huge relief from IMF for Pakistan

Subject to the final modalities, the IMF has agreed that the programme will be extended by another nine months to one year as against the original end-period of September 2022…reports Asian Lite News

Pakistan and the International Monetary Fund (IMF) have agreed, in principle, to extend the stalled bailout programme by up to one year and increase the loan size to $8 billion, giving markets the much-needed stability and a breathing space to the new government, the media reported.

The understanding has been reached between Pakistan Finance Minister Miftah Ismail and IMF Deputy Managing Director Antoinette Sayeh in Washington, sources told The Express Tribune on Sunday.

Subject to the final modalities, the IMF has agreed that the programme will be extended by another nine months to one year as against the original end-period of September 2022, the sources added.

The size of the loan would be increased from the existing $6 billion to $8 billion — a net addition of $2 billion, a senior government functionary requesting anonymity said.

The previous PTI-led government and the IMF had signed a 39-month Extended Fund Facility (July 2019 to September 2022) with a total value of $6 billion. However, the previous government failed to fulfil its commitments and the programme remained stalled for most of the time as $3 billion remained undisbursed.

Before taking Pakistan’s case to the IMF Board for approval, Islamabad would have to agree on the budget strategy for the next fiscal year 2022-23, the sources said.

Also, the government of Prime Minister Shehbaz Sharif would have to demonstrate that it would undo some wrong steps taken by the former regime against the commitments that it gave to the IMF Board in January this year.

Pakistan is passing through a phase of political and economic uncertainty and the decision to stay in the IMF programme for longer than original period would bring clarity in economic policies and soothe the rattling markets, Express Tribune reported.

ALSO READ: Bilawal to take oath as foreign minister of Pakistan

Previous Story

Imran looted nation for 4 years: Mariyum Aurangzeb

Next Story

Emmanuel Macron wins French Presidential election

Latest from -Top News

US oversees peace pledge for east Congo 

Rubio’s participation in the Washington ceremony with his Central African counterparts is an early step in what the Trump administration says is a rebuilding of US foreign policy    Secretary of State
Go toTop

Don't Miss

PTI’s Political Future at Stake

With PTI and its leader Imran Khan out of the

Reko Diq Stake Sale: Pakistan, Saudi in USD 10 Billion Talks

The top official further stated that the Saudi investors have