pakistan imf board approves the release of $700 million from $3 billion bailout
Published on: January 12, 2024.
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The International Monetary Fund’s executive board has given the green light for the release of $700 million from a $3 billion bailout package for Pakistan, according to the country’s finance ministry. The aim of the bailout is to help Pakistan overcome one of the most severe economic crises in its history. After conducting a first review of Pakistan’s economic reform program, the IMF executive board approved the release of the $700 million installment. This brings the total disbursements under the bailout to $1.9 billion so far.
Pakistan has been dealing with a significant economic crisis since 2022, when climate-induced flooding resulted in the loss of 1,739 lives and caused $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 the release of a crucial installment from the IMF bailout.
In June 2023, the IMF finally approved a $3 billion loan for Pakistan after the country agreed to implement measures such as cutting subsidies and increasing taxes to meet the conditions of the bailout. This loan had been put on hold since December 2022.
This recent development comes ahead of next month’s parliamentary elections. Currently, caretaker Prime Minister Anwaar-ul-Haq Kakar is overseeing the day-to-day affairs of the government. It is hoped that the IMF bailout will provide much-needed stability and support for Pakistan’s struggling economy.
Source: [CTV News](https://www.ctvnews.ca)
