IMF Approves Additional US$700 Million Loan for Pakistan
The International Monetary Fund’s (IMF) board has greenlit an additional loan of approximately US$700 million to Pakistan, bolstering the country’s ongoing economic recovery efforts. This loan comes as part of a broader US$3 billion bailout package, with the IMF and Pakistan’s Finance Ministry both confirming the decision on January 11.
The IMF’s approval follows the successful completion of the program’s first review, and it raises the total disbursements under the Standby Arrangement (SBA) to approximately US$1.9 billion, as stated in an official announcement by the fund.
In response to these positive developments, a deputy managing director at the IMF Antoinette Sayeh emphasized the importance of sustained commitment to the program, stating, “Continued strong ownership (of the program) remains critical to ensure the current momentum continues and stabilisation of Pakistan’s economy becomes entrenched.”
It’s worth noting that Pakistan has been operating under a caretaker government, and the IMF’s loan programme, initially approved in July, played a pivotal role in averting a sovereign debt default. Prior to securing this bailout, Pakistan had to implement a series of measures mandated by the IMF, including budget revisions, an increase in its benchmark interest rate, and adjustments to electricity and natural gas prices.