IMF Loan to Pakistan: The International Monetary Fund (IMF) has approved new loan assistance of about $ 1.2 billion to Pakistan under bilateral arrangement. This loan assistance clearly shows that the country has maintained stability despite the devastating floods.
The newspaper ‘Dawn’ reported in a news on Tuesday that the IMF Executive Board of Directors, in its meeting held in Washington on Monday, gave this approval under the dual ‘track bailout’, 37-month Extended Fund Facility (EFF) and climate-focused Sustainable Stability Facility (RSF).
Pakistan, which is facing cash crisis, is currently in the 24th program of IMF. Under this, last year it was agreed to provide assistance of seven billion dollars in a period of 39 months. The news said that under the latest approval, Pakistan is allowed to withdraw one billion dollars under EFF and $200 million under RSF.
IMF statement
“Given the uncertain global environment, Pakistan needs to maintain prudent policies to further strengthen macroeconomic stability,” Nigel Clarke, Deputy Managing Director and acting head of the IMF, said in the statement. At the same time, there is a need to accelerate the reforms necessary to achieve strong, private sector-led and sustainable medium-term growth.
Islamabad officials described the approval as a sign of confidence in Pakistan’s reform efforts and macroeconomic management, the newspaper reported. He also stressed that the real test will be to translate these commitments into concrete economic reforms.
IMF had expressed dissatisfaction
The IMF last month expressed dissatisfaction over Pakistan’s weak financial management, cash monitoring and accountability for public resource allocation and advised it to reduce personal and political misuse of taxpayers’ money.
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