- IMF approves $7bn loan to support Pakistan’s struggling economy
- Pakistan will recieve first $1bn immediately, and the rest over the next three years
- IMF said new loan will require “sound policies and reforms” aimed at stabilising the economy
IMF approves $7bn loan to support Pakistan’s struggling economy
The International Monetary Fund (IMF) has approved a $7bn (£5.25bn) loan to help Pakistan address its ongoing economic challenges. The country will receive the first $1bn immediately, with the remaining funds distributed over the next three years.
Prime Minister Shehbaz Sharif welcomed the IMF’s decision and expressed gratitude to the IMF Managing Director, Kristalina Georgieva, and her team for their support.
Pakistan has a long history of turning to the IMF for financial assistance, having taken more than 20 loans from the organisation since 1958. Currently, Pakistan ranks as the IMF’s fifth-largest debtor.
The IMF noted that the new loan agreement will require “sound policies and reforms” aimed at stabilising the economy and enhancing its resilience. In response, Pakistan has pledged that this will be the last loan it seeks from the IMF.
As part of the deal, Pakistan has agreed to implement several tough measures, including increasing taxes on individuals and businesses, in a bid to boost revenue. The country has struggled for decades with financial mismanagement and has frequently relied on IMF loans to meet its economic needs.