IMF approves $7bn bailout package for Pakistan

WASHINGTON, Sep 25 (SABAH): The International Monetary Fund (IMF) on Wednesday approved the much-awaited $7 billion Extended Fund Facility (EFF) for Pakistan.

The decision was made during an Executive Board meeting chaired by IMF Managing Director Kristalina Georgieva in Washington, with Pakistan’s agenda at the forefront. Pakistan is expected to receive the first tranche of $1.1 billion by Sept 30.

Following the approval of the loan programme, the second tranche is also anticipated within the same fiscal year, with the IMF loan being provided at an interest rate of less than 5%.

It is noteworthy that an Extended Fund Facility loan programme was agreed upon between Pakistan and the IMF on July 12. With the approval of the loan, Pakistan’s economic and foreign exchange reserves are expected to improve, and the pressure of payments on Pakistan will decrease.

Earlier, Prime Minister Shehbaz Sharif told media after a meeting with Turk President Tayyip Erdogan that Islamabad had met strict conditions of the IMF and hoped that it would get fiscal assistance to stabilise the country’s economy.