imf executive board approves release of us$700m for pakistan bailout
Published on: January 12, 2024.
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The International Monetary Fund (IMF) has approved the release of US$700 million as part of a US$3 billion bailout for Pakistan, according to the country’s finance ministry. This bailout is aimed at helping Pakistan recover from one of its most severe economic crises in history.
In a statement, the finance ministry announced that the IMF executive board has given the go-ahead for the release of the US$700 million installment after conducting the first review of Pakistan’s economic reform program. With this approval, the total disbursements under the bailout package will reach US$1.9 billion.
Pakistan has been grappling with a major economic crisis since 2022, when devastating floods caused significant damage, resulting in the loss of 1,739 lives and an estimated $30 billion in economic losses. The situation worsened last year when Pakistan faced the risk of defaulting on its foreign debt repayments due to a delay in receiving a crucial installment from the IMF bailout.
The IMF initially approved the US$3 billion loan to Pakistan in June 2023, subject to the country implementing measures such as reducing subsidies and increasing taxes to meet the conditions of the bailout package. The loan had been on hold since December 2022.
This development is particularly significant as it comes just before parliamentary elections scheduled for next month. Currently, caretaker Prime Minister Anwaar-ul-Haq Kakar is overseeing the day-to-day operations of the government.
Source: [CTV News](https://www.ctvnews.ca)
