IMF Approves $7 Billion Lifeline for Pakistan’s Economy

The International Monetary Fund (IMF) has approved a USD 7 billion Extended Fund Facility (EFF) for Pakistan, providing crucial support to the nation's struggling economy. The Pakistani government, led by Prime Minister Shehbaz, has expressed satisfaction with the development and pledged to continue economic reforms to achieve stability and growth.

The International Monetary Fund's (IMF) board approved a USD 7 billion Extended Fund Facility (EFF) for Pakistan, giving a critical boost to its struggling economy on Wednesday.

The announcement was made by the Prime Minister's Office (PMO), expressing the premier's satisfaction with the programme's approval. "The implementation of economic reforms is progressing rapidly," Prime Minister Shehbaz stated, emphasizing the government's commitment to achieving economic development and stability.

Shehbaz highlighted the rise in business activities and investments as a testament to the hard work of the economic team. He also acknowledged the diplomatic successes and increased remittances from Pakistanis abroad, attributing these to the public's confidence in the government's policies. "If the same hard work continues, God willing, this will be Pakistan's last IMF programme," he added.

The bailout, finalized after Pakistan agreed to an agriculture income tax overhaul and transferred some fiscal responsibilities to provinces, will release a first tranche of USD 1.1 billion by September 30, 2024. The remaining funds will be disbursed within this fiscal year, sources from the Ministry of Finance reported. State Bank of Pakistan Governor Jameel Ahmed confirmed the country's compliance with IMF demands.

From the sidelines of the UN General Assembly, Prime Minister Shehbaz thanked IMF Managing Director Kristalina Georgieva, friendly countries like Saudi Arabia, China, and the UAE for their support in securing the bailout. The government is focused on meeting IMF conditions, including tax reforms and hikes in electricity and gas prices.

(With inputs from agencies.)