Pakistan Bolstered by International Financing Amid New IMF Program

Pakistan has secured significant financing assurances from China, Saudi Arabia, and the UAE as part of a new IMF program that extends beyond rolling over $12 billion in loans. This program requires macroeconomic reforms and policies, and has enabled Pakistan to achieve dramatic economic improvements since mid-2023.

Pakistan has secured significant financing assurances from China, Saudi Arabia, and the United Arab Emirates, linked to a new International Monetary Fund (IMF) program. These assurances go beyond a deal to roll over $12 billion in bilateral loans owed by Islamabad, an IMF official disclosed on Thursday.

IMF Pakistan Mission Chief Nathan Porter did not disclose the additional financing amounts but confirmed the commitments from UAE, China, and Saudi Arabia. The IMF's Executive Board has approved a new $7 billion, 37-month loan agreement for Pakistan, necessitating sound policies and reforms to bolster macroeconomic stability.

Since mid-2023, Pakistan has seen significant economic improvements, with inflation dropping, stable exchange rates, and a significant increase in foreign reserves. The program's objectives include raising taxes, improving public spending, and achieving a primary budget surplus. Further loan reviews are scheduled for March or April 2025, based on performance criteria by the end of 2024.

(With inputs from agencies.)