IMF deal with Pakistan would revive $6 billion bailout
The International Monetary Fund agreed to revive a $6 billion bailout package for Pakistan after more than a month of discussions, providing major economic relief to Pakistan.
Pakistan and IMF have reached a staff-level agreement for the loan review, the IMF said. The agreement involves the implementation of prior actions, notably on fiscal and institutional reforms, before final approval is given by the IMF’s executive board.
Under the latest proposal, IMF would disburse about $1 billion to Pakistan, bringing the total disbursement to about $3 billion since 2019, according to the statement.
Muzzammil Aslam, a spokesman at Pakistan’s finance ministry, also confirmed the development.
“The Pakistani authorities and IMF staff have reached a staff-level agreement on policies and reforms needed to complete the sixth review,” the IMF said in a statement.
“The agreement is subject to approval by the Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms,” it said.
The IMF acknowledged that Pakistan continued to make progress in implementing the EFF-supported program “despite a difficult environment.”
Pakistan and IMF signed the 6 billion accord in 2019, but the release of a key installment had been on hold since earlier this year following the pandemic crisis.