IMF approves $7bn bailout for Pakistan

The International Monetary Fund’s Executive Board on Wednesday (September 25) approved a $7 billion Extended Fund Facility (EFF) for Pakistan, with the first tranche of $1.1 billion likely to be released by September 30, 2024.

The interest rate on the loan is less than 5%, sources in the Ministry of Finance said, adding the IMF may disburse the second instalment within this fiscal year. 

Confirming the development, State Bank of Pakistan (SBP) Governor Jameel Ahmed said that Islamabad would receive the first tranche of $1.10 billion, adding that the country has fulfilled all demands of the global lender.

Prime Minister Shehbaz Sharif, in a statement issued from the sidelines of the UN General Assembly in New York, voiced satisfaction over the approval of the loan programme and thanked IMF Managing Director Kristalina Georgieva and her entire team.

The premier also thanked the friendly countries, particularly Saudi Arabia, China, and the United Arab Emirates (UAE), for helping Pakistan secure the bailout package.

Saying that the implementation of economic reforms is vigorously underway, the premier said that the government would continue to work hard to achieve goals related to economic development after reaching stability.

PM Shehbaz said the increase in business activities and investment in the country was welcome and a testament to the hard work of the economic team.

“If the same hard work continues, God willing, this will be Pakistan’s last IMF programme,” the prime minister added.

“We do have good news. We have completed the review very successfully and I want to congratulate the government of Pakistan and the people of Pakistan for moving forward with home-defined and Pakistan-owned reforms and that are bringing fruits,” IMF Managing Director Kristalina Georgieva while talking to Geo News.

“Growth is up and inflation is down and the economy is on the sound path.”

To a question whether she sees a trickle-down effect benefiting the poor population of Pakistan, she said, “Yes I do. The government aims to collect taxes from the rich and strengthen the Benazir social programme to support the poor.”

Source: Geo News