IMF approves $6 bn loan for Pakistan under bailout programme

WASHINGTON: The Executive Board of the International Monetary Fund (IMF) in its Washington meeting on Wednesday approved $6 billion loan for Pakistan under its bailout programme, foreign media reported.

Earlier in the day, the IMF executive board held a meeting in Washington to make the final decision regarding the provision of bailout package to Pakistan.

Pakistan’s government and the IMF had already signed staff agreement on May 12. The Executive Board of the IMF will give its final nod to the agreement under which Pakistan will receive six billion dollars loan package from the lender in three years under the extended fund facility.

The final budget measures passed by the assembly along with a report on compliance with all prior actions will be key elements in the board’s decision to grant Pakistan’s request for a $6 billion bailout facility. The approved version of the budget and finance bill are expected to be transmitted to the Fund.

The government in its budget proposals for the next financial year has added Rs. 357 billion loan from the IMF.

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An IMF team will visit Islamabad every three months to review economic indicators of the country.

The government has already fulfilled all IMF’s conditions before signing of agreement, sources said.

The Economic Coordination Committee (ECC) of the Cabinet recently given the approval to increase the natural gas prices, one of the conditions of the IMF for its bailout package.

The ECC also approved to hike the natural gas tariff for domestic consumers by 190 pct and on average 31pc for all other categories.