IMF has approved USD 3 billion bailout package for Pakistan
13 July, 2023 | Anamika Singh Parihar
IMF: Today the Executive Board of IMF approved a 9- month Stand-By arrangement for Pakistan for an amount of SDR 2,250 million to support the authorities’ economic stabilization program.
International Monetary Fund (IMF) gives the node the approval of a 9-month Stand-By arrangement to help Pakistan’s economic stabilization program on Wednesday, according to the reports of a Pakistan-based media channel.
IMF in a statement said, “Today the Executive Board of International Monetary Fund (IMF) approved a 9- month Stand-By arrangement for Pakistan for an amount of SDR 2,250 million (about USD 3 billion, or 111 percent of quota) to support the authorities’ economic stabilization program.”
IMF also noted that last year’s flood and policy mishaps have been the prominent reason that has made Pakistan’s economic situation worse than ever. For Pakistan, this bailout is very urgent to bring the economy back on track.
Earlier UAE and Saudi Arabia transferred $ 1 billion and $ 2 billion into the account of the State Bank of Pakistan, Finance Minister Ishaq Dar has confirmed to the media. The deposits made by these two countries helped Pakistan to acquire a bailout package from IMF. These were also meant to boost Pakistan’s Forex reserve.
Recently the Foreign Exchange Reserve of Pakistan has plunged into a historic low and that has created chaos in Pakistan. The inflation rate has risen to its highest level and the value of the Pakistani Rupee plummeted to a record low against the US dollar. Common people in Pakistan have been continuously facing trouble since the beginning of this monetary crisis.
This IMF bailout came after the Pakistani government has taken stringent measures to reach the agreement. They have raised interest rates and taxes despite huge backlash from the people to meet the guideline of the IMF. This recent bailout had been in a deadlock since December last year as the Pakistani government was not taking any proper measures to reach an agreement.
Pakistan’s PM Shehbaz Sharif thanked IMF officials and also praised finance minister Ishaq Dar for his efforts to get this bailout. He hailed the bailout as it will help Pakistan to boost its forex reserve and economy as a whole.