KARACHI – Relief for Pakistan as International Monetary Fund (IMF) moves closer to approving $1.2 billion loan tranche, and strengthen the country’s struggling economy in coming weeks.
The global lender’s Executive Board is expected to convene in coming weeks to deliberate on the approval of a massive $1.2 billion loan tranche for Pakistan, that could unlock further billions in financial assistance for the cash-strapped nation.
The decision follows landmark agreement struck in March between Pakistan and the IMF, under which the country is set to receive support through extensive financial assistance programs aimed at stabilizing its fragile economy.
If approved, the tranche will boost Pakistan’s access to external funding, potentially unlocking billions in total support and providing a critical lifeline to shore up its foreign exchange reserves.
Officials said the primary goal of this financial package is to stabilize Pakistan’s economy, strengthen dwindling foreign reserves, and avert a deepening balance-of-payments crisis that has repeatedly threatened economic stability.
Over recent months, the South Asian nation already implemented series of tough economic reforms under IMF guidance, including cuts to subsidies, overhauls of the tax system, privatization of state-owned enterprises, and structural reforms in the energy sector—all aimed at restoring fiscal discipline and economic resilience.
Despite signs of gradual improvement, IMF cautioned that Pakistan’s economic recovery remains vulnerable. The institution warned that volatile global conditions and rising regional tensions could place renewed pressure on the country’s financial stability, potentially complicating future progress.
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