WASHINGTON – International Monetary Fund (IMF) on Monday approved the bailout package for Pakistan, in a massive relief to the government as cash strapped country is facing recent floods and economic uncertainty.
Finance Minister Miftah Ismail confirmed the development, saying "Alhamdolillah the IMF Board has approved the revival of our EFF program. We should now be getting the 7th & 8th tranche of $1.17 billion. I want to thank the Prime Minister Shehbaz Sharif for taking so many tough decisions and saving Pakistan from default. I congratulate the nation."
Alhamdolillah the IMF Board has approved the revival of our EFF program. We should now be getting the 7th & 8th tranche of $1.17 billion. I want to thank the Prime Minister @CMShehbaz for taking so many tough decisions and saving Pakistan from default. I congratulate the nation.— Miftah Ismail (@MiftahIsmail) August 29, 2022
The development comes as the South Asian nation met all prior actions proposed by the global lender. The ruling alliance also faced the wrath of distressed pubic after increasing the petroleum prices.
Pakistan lately secured financing that IMF required it to first arrange before considering a bailout deal. Saudi Arabia, Qatar, and UAE announced investing in different sectors of Pakistan's economy.
It was reported that IMF officials also gave a nod to increase the loan size to around $7 billion and extended it till June 2023.
The EFF programme, which was stalled along with another financing, was crucial for the South Asian nation that is desperately seeking dollar inflows amid a looming economic crisis.
Reports suggest that executive directors supported Islamabad’s request for loan approval and extension except for New Delhi.
The global lender further approved the extension of the programme through end-June 2023, and the augmentation of access by $930 million.
Islamabad earlier completed many stern demands, while the country has to show a primary budget surplus target of Rs153 billion until it is mutually revised in consultation with the IMF staff.
Meanwhile, Sharif-led incumbent government slammed PTI for attempting to jeopardise the IMF loan programme after KP refused to implement the terms of the Fund’s agreement in a letter.
Pakistani currency remains largely stable against US dollar and other currencies in the open market on February 24, 2024.
In the open market, the US dollar was being quoted at 279.5 for buying and 282.55 for selling.
On Saturday, Euro stands at 302 for buying and 305 for selling while British Pound rate stands at 352.5 for buying, and 356 for selling.
UAE Dirham AED hovers at 76.1 whereas the Saudi Riyal saw slight increase, with new rates at 74.35.
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