dpa
Islamabad
The International Monetary Fund (IMF) has agreed to revive a 6-billion-dollar bailout package for Pakistan, a move that will help the country to stabilize its crumbling economy.
Pakistan secured the bailout package in 2019 to rescue economy from balance of payment and fiscal deficit crises, but the loan was suspended twice after the payment of only three tranches.
A sum of 500 million dollars was paid earlier this year before the latest suspension due to Pakistan’s failure to implement an economic reform agenda. The IMF said in a statement on Monday it had reached a staff level accord with Pakistan to revive the package.
The payment of another tranche will, however, be subject to approval by the fund’s executive board and Islamabad’s actions to implement more reforms, the statement said.
The development is seen as a vital boost for Pakistan to revive it’s crumbling economy in the face of spike in global energy and commodities’ prices.
The IMF had asked Pakistan to adopt a market-based exchange rate instead the central bank’s control on the forex market, privatize lose-making public sector companies and end subsidies in power and agriculture sectors under the deal.
Some of the reforms were implemented since the deal was signed, but privatization and ending subsidies remained elusive due to political pressures. The IMF agreement comes weeks after longterm ally Saudi Arabia announced to place 3 billion dollars in Pakistan’s central bank to help it maintain depleting reserves at a safe level.
Islamabad
The International Monetary Fund (IMF) has agreed to revive a 6-billion-dollar bailout package for Pakistan, a move that will help the country to stabilize its crumbling economy.
Pakistan secured the bailout package in 2019 to rescue economy from balance of payment and fiscal deficit crises, but the loan was suspended twice after the payment of only three tranches.
A sum of 500 million dollars was paid earlier this year before the latest suspension due to Pakistan’s failure to implement an economic reform agenda. The IMF said in a statement on Monday it had reached a staff level accord with Pakistan to revive the package.
The payment of another tranche will, however, be subject to approval by the fund’s executive board and Islamabad’s actions to implement more reforms, the statement said.
The development is seen as a vital boost for Pakistan to revive it’s crumbling economy in the face of spike in global energy and commodities’ prices.
The IMF had asked Pakistan to adopt a market-based exchange rate instead the central bank’s control on the forex market, privatize lose-making public sector companies and end subsidies in power and agriculture sectors under the deal.
Some of the reforms were implemented since the deal was signed, but privatization and ending subsidies remained elusive due to political pressures. The IMF agreement comes weeks after longterm ally Saudi Arabia announced to place 3 billion dollars in Pakistan’s central bank to help it maintain depleting reserves at a safe level.