IMF approves US$7 billion bailout package for Pakistan
- By Shoaib Nizami -
- Sep 25, 2024
WASHINGTON DC: The International Monetary Fund (IMF) Executive Board on Wednesday approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of about US$7 billion, ARY News reported citing sources.
The IMF Executive Board in its meeting considered Pakistan’s request for an Extended Arrangement under the Extended Fund Facility.
Pakistan would receive an initial installment of US$1.1 billion by September 30, with the loan carrying an interest rate below 5 percent.
The 37-month Extended Fund Facility arrangement aims to support Pakistan’s economic stability and growth, with key policy goals including sustainable public finances, reduced inflation, and strengthened external buffers.
Earlier on September 13, Finance Minister Muhammad Aurangzeb announced that all matters with the IMF have been settled amicably, stating, “Alhamdulillah, the Prime Minister is grateful to the IMF negotiation team and related institutions.”
He highlighted that the economy is now transitioning towards growth following stabilization.
According to the minister, finalisation of the agreement will occur during the IMF board meeting later this month.
He added that a reduction in the policy rate will boost investment and business activities, creating employment opportunities.
PM expresses satisfaction
Meanwhile, Prime Minister (PM) Shehbaz Sharif expressed satisfaction over the approval of the IMF package of US$7 billion for Pakistan.
In a statement issued by the PM Office, the prime minister said that the process for economic reforms is underway and after attaining economic stability, efforts would continue to achieve the goals of economic growth and development.
“The boom in investment and business activities is the result of hard work by the government’s economic team and a welcoming sign. Besides notable diplomatic accomplishments, another significant achievement has been the surge in foreign remittances sent by Pakistani expatriates,” PM Shehbaz added.
The prime minister hoped that it would be the last programme with IMF if such progress continues.
PM Shehbaz also thanked the friendly countries, especially Saudi Arabia, China and the United Arab Emirates for extending support concerning the IMF package.
He also extended gratitude to IMF Managing Director Kristalina Georgieva and her entire team.
The PM also thanked the entire government economic team, Deputy PM and Foreign Minister Ishaq Dar; Finance Minister Muhammad Aurangzeb; Army Chief General Syed Asim Munir; Minister of State for Finance Ali Pervaiz Malik; Pakistan’s Ambassador in China Khalil Hashmi; the ambassadors of China, UAE, and Saudi Arabia in Pakistan; and Secretary Finance for their efforts and hard work to get the programme approved.
The prime minister thanked all the provincial governments, especially Punjab Chief Minister Maryam Nawaz, Sindh CM Syed Murad Ali Shah and Balochistan CM Sarfaraz Bugti.