IMF Approves $7 Billion Bailout Package for Pakistan Amid Economic Turmoil

The IMF approved a $7 billion bailout package for Pakistan to address its economic crisis. The deal involves fiscal reforms, increased taxes, and austerity measures. The program aims for economic stability through public finance consolidation, foreign reserve rebuilding, and a better business environment. However, debt restructuring remains unaddressed.

The International Monetary Fund (IMF) has approved a $7 billion bailout package for Pakistan to help it navigate through its ongoing economic crisis. The immediate release of an initial loan tranche of nearly $1.1 billion has been authorized as part of the deal.

In a meeting held in Washington, the IMF's executive board approved the 37-month Extended Fund Facility (EFF) program, which aims at improving Pakistan's macroeconomic stability. The program includes measures such as overhauling the agriculture income tax and increasing taxes and electricity prices, among others.

Despite these ambitious measures, the program has yet to address the critical issue of debt restructuring, causing concerns about its overall effectiveness in providing long-term economic relief.

(With inputs from agencies.)